Prepare comparative income statement, Finance Basics

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From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal costing method. Indicate the unit cost for each year under each method. Also evaluate the closing stock. The company produces a single article for sale.

Particulars	Year
	2008	2009	2010
Selling Price per unit	20	20	20
Variable manufacturing cost per unit	10	10	10
Total fixed manufacturing cost	5000	5000	5000
Opening Stock (Units)	-	-	500
Units Produced	1000	1500	2000
Units Sold	1000	1000	1500
Closing Stock (Units)	-	500	1000

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