4) CBT manufactures and sells specialized baseball bats for $110 each. The breakdown of CBT's costs are: direct material $28; direct labour $18; variable manufacturing overhead $1 1; xed manufacturing overhead $550,000; variable SG&A $4; fixed SG&A $250,000. During the year, CBT produced 60,000 units and sold 50,000 units. CBT has not decided which method should be used to value is inventory and COGS. Required worth 5 marks: a) Complete CBT's Income Statement using the Contribution Margin Method (variable costing). b} Complete CBT's Income Statement using the Gross Margin Method (absorption costing). c) If there is a difference in Operational Income (Profit), and comment on what is causing the difference between the two methods, and if it is permanent. d} Which costing method do you suggest. Give at least one legitimate reason for your selection