b$)$ The following information has been extracted from the books of crossline Ltd for the year to $31$ March $2021$

Units $000$

Production $40$

Sales $34$

Production cost incurred: Sh $000$

Direct material $10,200$

Direct labour $3,800$

Variable overheads $1,500$

Fixed overheads $1,700$

Selling and administrations costs:

Sales and salaries $450$

Variable sales commission $300$

Promotion and advertising $480$

Other fixed costs $520$

The company$$s unit selling price is Sh $550.$

Required:

a$)$ Prepare a comparative income statement using the marginal and absorption methods.

b$)$ Giving reasons advise on the preferred cost apportionment technique