Need part 2 But only correct otherwise downvoted

4. Marginal sw Product wine / Division wise Contribution Analysis - Marginal vs Absorption Costing Profit Statements of first half of a year, the following Absorption Based Profil Statoment has been drawn OPELTOREAMS Lid manufactures and market the producen, Band C in the State of Haryana and Rajasthan. At the end Total (in '000s) Haryana (in '000s) Rajasthan (in '000s) 3,900 3,000 Manufacturing Cost of Sales 3,030 900 699 201 36 169 205 1-14 509 Particulars Sales 2,331 870 Less: 156 669 Gross Profit 120 353 Less: Administration Exps (A) 184 Selling Expenses (B) 304 361 Total Expenses Net Profit 365 (A) The Expenses are constant and common to both the states, They stand allocated on the basis of Sales. (B) The Expenses are semi-fixed but specifically relate to the respective State. The Management is worried to note that the decision taken to market the products in Rajasthan to utilise idle capacity has proved wrong and wish to cover only Haryana State. The Incharge of Marketing Division is not satisfied with the above way of profit presentation. He is of the firm opinion that salos effected in the stato Rajasthan is contributing profits. For the next half year he expects no increase in demand in Haryana while for Rajasthan he anticipates to sell B or C more by 50% of existing sales. This will utilise the idle capacity in full. The product wise relevant details for the first half of the year are -- Particulars Sales (in 2000's) 900 1,200 Haryana 300 300 300 Rajasthan Variable Costs (as a % on Sales): 40% Manufacturing 35% 30% Selling 3% 2% 2% Specific Fixed Manufacturing Expenses (in 2000's) 570 470 610 B. 900 You are required to: 1. Prepare a State-wise profit statement for the first half of the year using Contribution Approach. Also offer your views on the contention of the management and opinion expressed by Incharge of Marketing Division. 2. Prepare a product-wise profit statement for the same period using Contribution Approach. 3. Submit your recommendation as to which product should be produced to utilise the idle capacity