Variable and absorpftion costing, explaining operating profit differences. (40 minutes) Svenberg, AS, manufactures and sells 120-

centimetre television sets. It uses an actual costing system, in which unit costs are calculated on a monthly basis. Data relating to January, February and March of 2000 are: kio4

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JANUARY FEBRUARY MARCH Unit data Opening stock Production Sales 0 300 300 1,000 800 1,250 700 800 1,500 Variable-cost data Manufacturing costs per unit produced DKr 900 Marketing costs per unit sold DKr 900 DKr 900 600 600 600 Fixed-cost data Manufacturing costs Marketing costs 140,000 140,000 DKr 400,000 DKr 400,000 DKr 400.000 1-40,000 The selling price per unit is DKr 2,500. REQUIRED 1. Present income statements for Svenborg in January, February and March of 2000 under (a) variable costing and (b) absorption costing. 2. Explain any differences between (a) and (b) for January, February and March.