1. comment on the above results which were obtained from each periods (1-4) and in total by the two systems, state the reasons for the differences in profits. Give the reasons behind the calculations and differences thereof

Absorption Costing Period 1 Period 2 Period 3 Period 4 500 450 Production Sales Closing Stock 500 400 100 -100 50 2 750 000 2 200 000 3 025 000 2 475 000 Revenue (Sales "revenue per unit) Less: Expenses Variable (VC per unit* sales) Fixed Net Operating Income before adjustments Add/Less: Fixed portion of closing stock Net Operating Income 1 500 000 600 000 650 000 1 200 000 600 000 400 000 -120 000 280 000 1 650 000 600 000 775 000 120 000 895 000 1 350 000 600 000 525 000 -60 000 465 000 650 000 Marginal Costing: Period 1 Period 2 Period 3 Period 4 Production Sales 500 500 500 450 550 500 450 400 2 750 000 S 2 200 000 3 025 000 2 475 000 Revenue (Sales revenue per unit) Less Expenses Variable (VC per unit' sales) Contributions Less Fixed Cost Net Operating Income 1 500 000 1 250 000 600 000 650 000 1 200 000 1 000 000 600 000 400 000 1 650 000 1 375 000 600 000 775 000 1 350 000 1 250 000 600 000 525 000