Question 2: Variable costing and absorption costing Details of a company's first two years of operations are shown: The company's unit product cost is computed as follows: Required: a) Prepare a profit and loss account for each year using Absorption costing. [9 marks] b) Calculate what the profit would be each year if the company used Marginal costing. [9 marks] c) Reconcile the differences between the two profit figures and explain the circumstances in which one method may be more suitable than the other. [7 marks]