Rays Company manufactures and sells electric blankets. The selling price is $12. Each blanket has the unit cost set out below. Administration costs are incurred at the rate of $20,000 per annum. The company achieved the production and sales of blankets set out below. The following information is also relevant: 1. The overhead costs of $2 and $3 per unit have been calculated on the basis of a budgeted production volume of 90,000 units. There was no inflation. 3. There, was no opening stock. Unit cost $. Direct material 2 Direct labor 1 Variable production overhead 2 Fixed production overhead 3 8 Year 1 2 3 Production 100 110 90 Sales 90 110 95 You are required: (a) To prepare an operating statement for each year using (i) Marginal costing and (ii) absorption costing (b) To explain why the profit figures reported under the two techniques disagree