II. Administrators of KANT Corp. Decided to prepare FULL COSTING INCOME STATEMENT for external reporting and DIRECT COSTING INCOME STATEMENT for internal reporting. Forecasts for the following period showed that the demand will increase 20% and to cover this they have decided to produce 24.000 pieces with no beginning or ending inventories. But, the forecasts did not come true, so sale increase did not happen but the production is realized as budgeted. Financial information of the current period are as follows: Sale Price 300 $/U. DM 45 $/U. DL 75 $/U. Variable M.O. 30 $/U. Sale Commissions: 5 $/U. Fixed M.O. 960.000 $ Fixed Administration Exp. 1.000.000 $ 1. Prepare the Income Statement of the period by Full Costing and Direct Costing Methods, if the profit appears different then discuss the reason. 2. Compute the breakeven point of the business on quantity and amount. 3. Compute the sale quantity in order to increase the profit to 1.300.000 $.