Self-test Able & Co. produce 5,000 units of toothbrushes per month.

You are provided with the following information relating to costs:

Material 60 pence per unit Labour 40 pence per unit Factory rent £1,000 per month Production manager £24,000 per annum Sales of 2,000 units are made at £3 per unit You are required to compare marginal and absorption costing by showing your calculations, side by side.