The figures given below are all that could be salvaged from the records after a recent fire in the offices of Firelighters Limited. The company manufactures a single product, has no raw materials or work in progress and values its stocks at marginal cost (i.e. at variable manufacturing cost) using the FIFO basis. It is known that the unit closing stock valuation in \(19 \mathrm{X} 0\) was the same as in \(19 \mathrm{X} 9\).

\section*{Required:}
Prepare a revenue statement for management showing contribution, operating profit and net profit for each year in as much detail as the information given above permits.
\section*{(Reproduced by permission of the University of Cambridge Local Examinations Syndicate)}

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19X0 19X1 Selling price per unit 10.00 10.00 Variable manufacturing cost (per unit produced) 4.00 4.00 Variable selling cost (per unit sold) 1.25 Quantity sold (units) 100,000 Quantity manufactured (units) 105,000 130,000 Contribution ? 585,000 Fixed manufacturing costs 105,000 117,000 Other fixed costs 155,000 Operating profit before interest charges 292,000 Interest charges 70,000 ? Opening finished stock (units) 2 Closing finished stock (units) 20,000 20,000 Net profit for the year 210,000