Q1. Sugar Industry has three process of Milling. Fermentation and Sugar Production. The following information is provided relating to the three process expenses in OMR Milling Fermentation Sugar Production Fixed Factory Expenses 10,300 7,240 30.100 Fixed Selling Expenses 12.000 15,000 70% of Milling Factory Variable Expenses 180,400 14,720 10,560 Selling Variable Expenses 70,542 20,600 20,962 Direct Material 200,500 180,520 150,000 Direct Labour 50,152 30,140 20,898 Sales 580,000 320,000 280,000 Fixed Factory and selling overhead are apportioned to all the process on equitable basis. From the information provided you are required to a. Prepare Income statement under Marginal Costing and Absorption Costing Method. (4.5 Marks) b. From the above three process. Identify which process is getting higher profit under Marginal costing method and also make an estimation for next year profit if the company want to earn 25% extra profit to the existing profit. (0.5 Mark)