SMP Beverages produces and sells fruit infused blends of mineral water in cases. The firm uses variable costing for internal management purposes and absorption costing for external purposes. At the end of each year, financial statements must be converted from variable to absorption costing to satisfy external requirements. At the End of 2018, it was anticipated that sales would increase by 15% for the 2019 sales. Production was expected to be increased to meet this expected demand. The following data relates to the years 2018and 2019: Selling price per package Sales (packages) 2018 2019 $50 $50 44,000 50,000 Beginning inventory 8,000 12,000 Production 46,000 54,000 Ending Inventory 12,000. Direct material price variance $6,000F $3,000U Other Variable production variances $7,900U $9,500 Standard variable cost per case for 2018 and 2019 Direct material $9.50 Labor 17.00 Overhead 4.50 Variable selling and admin 6.25 Annual fixed cost for 2018 and 2019 actual and budgeted were: Production Selling and administration $225,000 86,000 The fixed overhead rate under absorption costing is based on a practical capacity of 50,000 units per year. All variances and under or overapplied overhead are written off to cost of goods sold. Required a) Prepare the Income Statement for the year 2019 using Absorption, Variable costing and Throughput costing. b) Reconcile the Absorption costing and Variable costing incomes. (18 Marks) (2 Marks) (2 Marks) c) Calculate the break-even point under Absorption costing d) Which method offers the best information for decision making and justify why that method should be used. (3 Marks)