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OZCORP is a manufacturer of Adhesive Tapes. During the month of April 2021, they produced 20,000 units. There was no opening inventory but in

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OZCORP is a manufacturer of Adhesive Tapes. During the month of April 2021, they produced 20,000 units. There was no opening inventory but in the month of April 2021 they sold 17,500 units. Details of the product cost per unit is as follow; Direct Material Direct Labor 20 15 Variable manufacturing Overheads 07 Variable selling and administrative overheads 05 Fixed Manufacturing Overheads Fixed Manufacturing overheads (Actual) 03 60,000 Requirement: 1. Calculate Gross Profit, Net Profit, Profit Per Unit under Absorption Costing? 2. Calculate Total Contribution, Net Profit, Contribution per unit and Profit Per Unit under Marginal Costing? 3. Explain why the Total Gross Profit under absorption costing and Total Contribution under marginal costing are different? (15 Marks)

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