You are given the followingdata: Units '000'

Production 30

Sales 24

Production cost incurred: Sh '000'

Direct material 7,200

Direct labour 1,800

Variable overheads 1,500

Fixed overheads 2,700

Selling and administrations costs:

Sales and salaries 450

Variable sales commission 300

Promotion and advertising 480

Other fixed costs 720

The company's unit selling price is Sh 550.

Work out:

a) Profit and loss statement under direct costing approach.

b) Profit and loss statement under indirect costing approach.

c) An explanation of the difference in profit or loss in (a) and (b) above.