j40 P.15.6 As the chief financial analyst of a company, you have been asked by the chief executive to ex- plain the differences between two income statements prepared for his consideration: one was prepared by the controller and the other by the sales manager. Both used the same data from operations. Particulars Statement A Statement B Sales (30,000 units) 30,00,000 30,00,000 Cost of goods sold: Opening inventory Production costs 18,00,000 27,00,000 Less: closing Inventory (6,00,000) (9,00,000) Total 12,00,000 18,00,000 Gross profit 18,00,000 12,00,000 Less: other costs (15,00,000) (6,00,000) Income 3,00,000 6,00.000 The only variable costs of production are 340 per unit. (1) Determine which statement was prepared using variable costing and which using absorption cost- ing. Explain how do you know it (ii) Determine: (a) fixed production costs: (b) selling and administrative costs: (C) production in units; and (d) cost per unit of inventory for both statements