Please help me with questions 1-4

Income 5 tatements under Nusorphon Costing and Variotile Costinig The demand for aloe yere hand lotion, one of numerous products manstactured by Smooth fikan Care broducts inc, has dropped sharply becadie of recme competition from a sumilar product. The company s chemists are currently completing tests of yorious new formulas, and it as anicipated that the manufacture of a superar oroduct can be started an December 1, one month in the future. No changes will be needed in the present producton facilies to manufacture the new product becaste only the inature of the vancas matenals will be changed. The controller has been asked by the piesident of the cornpany for advice on whether to continat production during Nove mber or to sunpend the manufacture of albe veia hand lotion until Decarmher 1. The controlier has assembled the following pertinant data: Sales for November are expected to drop about 20% belon those of the preceding month. No significant changes are anticipated in the fixed rosts or variable costs ner unit. No. extra costs will be incurred in datcontinuing operabons in the portion of the plant associated with aloe vera hand lotion. The inveatory of alie vera hand lotion at the begincing an end of Nowember is expected to ber inconsopuential. Required: 2. Prepare an estimated income statement in variable costing form for November for aloe vera hand lotion, assuming that production continues during the month. Smooth Skin Care Products Inc. Estimated Income Statement-Variable Costing-Aloe Vera Hand Lotion 3. What would be the estimated operating loss if the aloe vera hand lotion paoduction were temporaniy suspended for November? 4. What advice should the contreller give to management? Production at A. V. lotion should be Temporacy suspension of prodaction would result in an operating foss at eperating loss of If productoon is continued. The result would be a savings of