The following information relates to the only product made by Mario Traders for the year ended 31 July 2022:
Opening inventory 0
Number of units manufactured 945 000
Number of units sold (at R310 per unit) 756 000
Direct materials cost per unit R94
Direct labour cost per unit R123
Variable manufacturing overheads cost per unit R92
Variable selling expenses per unit R22
Fixed manufacturing overheads cost R18 900 000
Fixed selling and administrative expenses R15 750 000
2.2 Draft the income statement for the year ended 31 July 2022 using the Absorption costing method