The following information was extracted from the book of Happy Ltd for the year ended 31/12/2001

Output 100000 units

Production costs

Direct labour cost Shs 5 Million

Direct material cost Shs 2 million

Variable overheads Shs 2 million

Fixed overheads Shs 4 million

Units sold 90,000

Selling price per unit Shs 100.00

Assume closing stocks at the end of the previous period were nil.

Required

Using both absorption and marginal costing determine

Cost per unit

Prepare the income statement