A company commenced business on 1 January 2019 making one product only. The cost card of the companys product is as follows: K Direct material 16 Direct labour 10 Variable production overhead 4 Fixed production overhead 10 Product cost per unit 40 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 72,000 units per annum. The fixed production overhead incurred in January was K30, 000. The selling, distribution and administrative expenses were: Fixed K20, 000 Variable 15% of the sales value The selling price per unit was K35 and the number of units produced and sold were: Production 4,000 units Sold 2,000 units Required Prepare the Income statement for March 20x8 using (i) Absorption costing (12 marks) (ii) Marginal costing (13 marks) (Total 25 marks