$\backslash$table$[[$Sales$,,$R$100000],[$Variable expenses,,$($R$40000)],[$Cost of goods sold,R$30000,],[$Selling expenses,R$10000,],[$Contribution margin,,R$60000],[$Fixed expenses,,R$38400],[$Manufacturing overhead,R$24000,],[$Administrative$,$R$14400,],[$Operating income,,R$21600]]$

Selected data for $2011$ concerning the operations of the company are as follows:

$\backslash$table$[[$Beginning inventory,$0$ units$],[$Units produced,$8000$ units$],[$Manufacturing costs:,$],[,$ Rirect labour,R $1\mathrm{.}00$ per unit$],[$Direct materials,R $1\mathrm{.}40$ per unit$],[$Variable overhead,$]]$

Required:

$4\mathrm{.}1$ Prepare an absorption costing income statement.

$4\mathrm{.}2$ Reconcile the profits