P Ltd manufactures a specialist photocopier. Increased competition from a new manufacturer has meant that P Ltd has been operating below full capacity for the last two years.

The budgeted information for the last two years was as follows:

	Year 1	Year 2
Annual sales demand (units)	70	70
Annual production (units)	70	70
Selling price (for each photocopier)	50,000	50,000
Direct costs (for each photocopier)	20,000	20,000
Variable production overheads (for each photocopier)	11,000	12,000
Fixed production overheads	525,000	525,000

Actual results for the last two years were as follows:

	Year 1	Year 2
Annual sales demand (units)	30	60
Annual production (units)	40	60
Selling price (for each photocopier)	50,000	50,000
Direct costs (for each photocopier)	20,000	20,000
Variable production overheads (for each photocopier)	11,000	12,000
Fixed production overheads	500,000	530,000

There was no opening inventory at the beginning of Year 1.

Required:
1.	Prepare the actual profit and loss statements for each of the two years using: a. Absorption costing b. marginal costing 2.2. Calculate the budgeted break-even point in units and the budgeted margin of safety as a percentage of sales for Year 1 and then again for Year 2.