Whereas,

MCPS	Manufacturing costs of products sold
NPMC	Non-Product Manufacturing costs
MCFP	Manufacturing cost of the production

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P&L company presents the following P&L statement for July year N: Sales 203 000 177 500 25 500 9 100 MCPS + NPMC Gross Profit Selling Distribution) Expenses Variable Fixed Administrative Expenses Variable Fixed Operational Profit 5 000 5400 7 000 (1 000) Regarding May, the following data are also known: - Selling price: 140/Unit: Unit MCFP (VCS): 50 /Unit; Capacity of production used in the month: 75%; There were no opening stocks of finished products and the finished products (production) variation was + 50 Units. It is required (you can use as supporting tables, the file Excel - Part I): 1) Knowing that the P&L Statement of A is prepared using the variable costing system (VCS), present, clearly explaining all calculations, the P&L statement if the company follows the absorption costing system. 2) Justify the difference of profits obtained in the two P&L Statements, using the fixed costs approach; 3) Consider that the manufacturing variable costs of the month amount to 75 000 . Ascertain the breakeven point and the margin of safety of the company, explaining the meaning of both. 4) Assuming the same of the previous paragraph, ascertain the profit that the company would make, if the selling price increases 20%, following an additional advertising campaign of 40 000