Honeydew Ltd manufactures a single product. Its fiscal year ends on 31 December. There was no opening inventory in 2019. The following information was extracted from its books:

	2019
Units produced	32,000
Units sold	25,000
Cost and price data for 2019:
Selling price per unit	$110
Direct materials cost per unit produced	$9
Direct labour cost per unit produced	$8
Variable manufacturing overheads per unit sold	$13
The company also incurred fixed manufacturing overheads of $96,000 per annum in 2019.
Non-manufacturing overheads are as follows:
Variable non-manufacturing overheads	$12 per unit sold
Fixed non-manufacturing overheads	$70,000 per annum

Required:
(a)	Prepare an operating statement for the year ended 31 December 2019 using:
	Absorption costing	(16 marks)
	Marginal costing	(15 marks)
(b)	Why marginal costing is normally be used for making business decision? Explain.	(4 marks)