Starzmann GmbH assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. Data relating to April and May of 2008 are:

The selling price per motor vehicle is €24 000.
Required
1. Present income statements for Starzmann in April and May of 2008 under (a) variable costing and (b) absorption costing.
2. Explain any differences between (a) and (b) for April and May.

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April May Unit data Opening stock Production Sales 0 500 350 150 400 520 Variable-cost data Manufacturing costs per unit produced Marketing costs per unit sold 10000 3000 10000 3000 Fixed-cost data Manufacturing costs Marketing costs 2 000000 2 000000 600000 600000