Question 1 (10 marks) CK Company sells its products for $50 each. The current production level of the current year is 20,000 units, although only 15,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials Direct manufacturing labor Variable manufacturing costs Total fixed manufacturing costs Variable Marketing expenses Total fixed marketing expenses $8.00 $10.00 $7.00 $ 200,000 $6.00 per unit $160,000 Required: (a) Prepare income statements using absorption costing and variable costing respectively. (7 marks) (b) Which inventory costing method do you think would be more useful for internal decision making, such as pricing decisions or product appraisal? Explain