Read the following scenario and answer the question that follows: Jeri Manufacturing manufactures a child educational toy. To save on employment cost, the business recently hired a new management accountant who does not have any previous experience in accounting. The Management Accountant drafted the following Statement of Comprehensive Income using the absorption costing method: Sales Less: Cost of sales (R172 500 + R1 040 000 + R232 500) Opening inventory (2 300 x R75) Add: Production costs (16 000 x R65) Add: Closing inventory Under-absorption of overheads Variable selling, distribution and admin costs Contribution Fixed selling, distribution and admin costs Net profit/ (loss) Additional Information: R 3 200 000 (1 445 000) 172 500 1 040 000 232 500 20 000 (201 600) 1 573 400 (317 000) 1 256 400 The educational toy sells for R200 per unit. There were 3 100 units in stock at the beginning of the period and 2 300 units in stock at the end of the period. The business expected to produce 18 000 units for the period but only 16 000 was produced. The unit cost of each toy consists of R23 for direct material, R35 for direct labour, R7 for variable overheads and R10 for fixed overheads. Actual fixed overheads were equal to budgeted fixed overheads for the period. Required: Assess, with reasons, the accuracy of the Statement of Comprehensive Income. If any errors have been made, provide the solution to the error. (22 marks)