The demand for solvent one or numerous products marvutacured by M Industries inchas dropped sharply because ofrecent competition from product. The company cheese cently completing tests of various new formulas and its antoputed that the manufacture of a super product can be started on one month free changes will be needed the present production facilities to manufacture the new product because only the mixture of the various mates will be changed The controller has been and try the president of the company for advice on whether to continue production during Mayor to suspend the most in the concert RZM Industries Inc Income Statement Solvent For the Month Ended April 30 $500,000.00 1 Sales (4,000 units) 2 Cost of goods sold 424,000.00 Gross profit 4 Selling and administrative expenses 5 Loss from operations $76,000.00 102,000.00 $(26,000.00) The production costs and selling and administrative expenses based on production of 4000 units in Apolare as follows $45 per unit 20 per unit 16 per Direct materials Director Variable manufacturing cost Variable selling and administrative expenses Pred manufacturing cost Faxed seting and date expenses 15 perut $100,000 for A 42000 for April Sales for May we expected to diop about 20%briow thout all we preceding north No picant changes are anticato removed Cents or Variable costs per un seconds be in discontinuing operations in the portion of the placed with solvent The inventory of over at the beginning and end of May is expected to be consta Required: 1 Prepare an estimated income statement in absorption costing form for May for solvent assuming that production continues during the month Round amounts to two decimals ? Prepare an estimated income statement in vanatse costing form for May for solvent, assuming that production continues during the month Round amounts to two decimals 3 What would be the estimated loss an income from operations if the solvent production were temporarily suspended for May a loss is incurred enter that amount as a negative number using a minus sign 4. What advice should the controller give to management *Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Be sure to complete the statement heading. A colon () will automatically appear if it is required la net loss is incurred, enter that amount as a negatve number using a minus sign 1. Portantimaled income talement into costing for forway for solvent assing that can connues during the month Round amount to two cromas Hefer to the list Label and Amount Descriptions for the exact woeding of the wwwer choice for beste es complete statement fonding A cober) wilmayapear is required net kan ocured, erter out amount as a nganye number on a sin RIM dustries Inc med Income Stration Costing-Sovent For the Month Ending May 31 Cost of goods sold wable cost of goods sold Fredactating cost + 7 1 9. Label) 10 11 12 13 2. Prepare an ested income statement in variable costing form for May for solventing that production continues during the month Round amounts to home to the isso Label and Amount Descriptions for the exact wording of the answer choice for text entries Beure to come the statement heading Acron () witamatically para que fonet os incurred enter that amount as a negative number using a minus RM Industries in Ested income statement Mobile CostingSolvent be 7 1 9 10 (Label) 11 12 11 What would be meestwisted in come from operations if the solvent production were temporainly suspended for Mayat a loss curd enter that amount as a negative number und 5 We show the converge to manager Production of soll be Temporary penson or protection while operang kontol production continued the result would be a savings at compared with an operating sa