I sort of understand how to answer part b but not sure of part a.

Starlight Limited produces and sells the Capella. In the third and fourth quarter of 2019, its selling price is constant at 800 per unit. Unit production costs are as follows. Direct labour 5 hours, at 25 per hour Direct materials 12 kg, at 8 per kg Variable overhead 29 Each unit absorbs fixed overhead of 100, based on budgeted production of 32,000 units per annum. The variable component of distribution and administrative costs is 18.75% of sales, the fixed component is 1 million per annum. There were no inventories at the start of the third quarter of 2019. Production and sales in the third and fourth quarter of 2019 were as follows: Units ('000) Q3 Q4 Production 10,000 6,000 Sales 7,000 8,000 Required: a) Show, in '000, the operating income statements for the third and fourth quarters of 2019, using (1) marginal costing: (ii) absorption costing. [32 marks] b) Use your calculations in part (a) to explain the differences between the two methods. [10 marks)