required all. question is complete

Q1: Bittern Lid manufactures and sells a single product at a unit selling price of $25 in constant price level terms. Its cost structure is as follows: Variable costs: Production materials f10 per unit produced Distribution El per unit sold Semi-variable costs: Labour (5000 per annum, plus $2 per unit produced Fixed costs: Overheads $5000 per annum. For several years Billern has operated a system of variable costing for management accounting purposes. It has been decided to review the system and to compare it for management accounting purposes with an absorption costing system. Page 5 of 9 Google Forms As part of the review, you have been asked to prepare estimates of Bittern's profits in constant- price- level terms over a three-year period in three different hypothetical situations and to compare the two types of system generally for management accounting purposes. Required: In cach of the following three sets of hypothetical circumstances, calculate Bittern's profit in each of years LI, 12 and 13, and also in total over the three-year period i to 13, using first a variable costing system and then a full-cost absorption costing system with fixed cost recovery based on a normal production level of 1000 units per annum: (i) Stable unit levels of production, sales and inventory t1 ta Opening stock 100 100 100 Production 1000 1000 1000 Sales 1000 1000 1000 Closing stock 10O 100 100 Stable unit level of sales, but fluctuating unit levels of production and inventory ta Opening stock 100 600 400 Production 1500 800 700 Sales 1000 1000 1000 Closing stock 600 400 100 (imi) Stable unit level of production, but fluctuating unit levels of sales and inventory Opening stock 100 600 400 Production 1000 1000 1000 Sales 500 1200 1300 Closing stock 600 400 100 (Note that all the data in (i)-(il) are volumes, not values.)