[Following profit statement is provided for your reference to calculate the net cash benefit by your investment manager Ms Victoria] + PROFIT STATEMENTS ( million) Years 2016 2017 2018 2019 2020 Sales revenue 176.200 190.000 199.110 201.240 201.545 Cost of Sales 28.629 31.294 32.111 32.919 32.382 Gross profit 147.571 158.706 166.999 168.321 169.163 Fixed and semi-variable costs Fixed overhead 34.283 40.872 42.478 44.014 45.523 5.000 6.000 7.000 8.000 9.000 6.000 6.500 7.000 7.500 8.000 Promotion Research and Development Depreciation New model launch 31.500 49.400 51.350 53.300 55.250 20.000 0.000 0.000 0.000 8.000 8.000 8.000 8.000 8.000 Professional charges Stock upkeep 0.000 0.362 0.376 0.472 0.504 Total fixed and semi variable 104.783 111.134 116.203 121.286 126.277 Operating profit 42.788 47.572 50.795 47.036 42.887 Interest on loans 15.000 25.000 30.000 30.000 15.000 Profit before tax 27.788 22.572 20.795 17.036 27.887 Tax 9.726 7.900 7.278 5.962 9.760 Profit after tax 18.062 14.672 13.517 11.073 18.126 Dividends 10.000 10.000 10.000 10.000 10.000 Retained earnings 8.062 4.672 3.517 1.073 8.126 Financial Analysis for internal management: The management accounting team of Daffodil Electronics also come up with some questions and request you to explain/answer them for the upcoming board meeting: What is the point of distinguishing absorption and marginal costing? Why do they report different profits? Explain with an example. (5 Marks) 1