Marketing Division of company wishes to discontinue the sale of one of the products in view of unprofitable operations. Following details are available with regard to turnover, costs, and activity for the current year ending 31st March.

Overhead costs and basis of apportionment are:
Fixed expenses

Based on the above data, you are required to:
(i) prepare a statement showing summary of Selling and Distribution Costs to the products, and (ii) prepare a Profit and Loss Statement showing contribution and profit or loss on sale of each of the products to enable the marketing department and take an appropriate decision on discontinuance of the sale of a product.

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Products P Q R S Sales turnover 6,00,000 *10,00,000 *5,00,000 9,00,000 Cost of sales 3,50,000 8,00,000 3,70,000 4,80,000 Storage area (square metres) 40,000 60,000 70,000 30,000 Number of cartons sold 2,00,000 3,00,000 1,50,000 3,50,000 Number of bills raised 1,00,000 1,20,000 80,000 1,00,000