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Please solve this question as early as possible. 1. You act as an Owner Manager ofa Small and Medium Sized Enterprise located at Kumarkhali, Kushtia.

Please solve this question as early as possible.

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1. You act as an Owner Manager ofa Small and Medium Sized Enterprise located at Kumarkhali, Kushtia. Due to Covid 19 Pandemic, you are experiencing a sharp decline in your revenue prole. From your understanding of current market challenge, you believe that if you open a new market segment where you will deliver your products at customers' preferred location (home delivery) with a minimal charge for delivery, your revenue profile will improve. However, you need to keep your staffs highly motivated to achieve your target. You are planning to declare a prot bonus among your staffs based on year end net operating income. You have discussed this with one of your university friends who is a CPA. He recommends you to use net operating income under absorption oosting to distribute bonuses among your staffs. However, Ms. Jasmine, Director Finance of your enterprise, prescribes to use net operating income under variable costing to distribute bonuses among the staffs. She expects that net operating income under variable costing will be less than that of absorption costing and thus if bonuses are given based on variable costing net operating income, the owner will be beneted. Required: The owner is convinced with the proposition of Ms. Jasmine. Provide your opinion in this regard with justication {3 Marks)

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