Exhibit 4 Actual production and sales data for Regina Company for 2018 Number of vacuum cleaners produced 18,000 Number of vacuum cleaners sold 17,500 Selling price per vacuum cleaner $450 Variable costs per vacuum cleaner: Manufacturing $115 Marketing $45 Fixed costs: Manufacturing overhead $1,200,000 Marketing $1,366,400 Required: (a) Prepare a 2018 income statement for Regina Company using variable costing. (4 marks) (b) Prepare a 2018 income statement for Regina Company using absorption costing. (6 marks) (c) Are the profit figures in your answers to (a) and (b) above the same or different? Explain why they are the same or different. (4 marks) (d) Regina's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Regina management make to improve such a plan? Explain. (4 marks)