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Please help me answer v and vii only. (iii and iv's answer is provided in the first picture already)

(iii) RM Variable costing Income statement [marginal cost basis] Sales revenue (7500*20) Less: Variable cost (7500*8) Contribution margin Less: fixed cost (16000+4000) Income 150,000 60,000 90,000 20,000 70,000 (iv) RM 150,000 75,000 Absorption costing Income statement [Absorption cost basis] Sales revenue (7500*20) Less: Cost of goods sold (7500*10) Gross Margin Less: Selling and administrative expense [Other fixed overheads] Income 75,000 4,000 71,000 Question 4 Child Toys Company produces toys for the children. During the month of September 2020, the company produced 8,000 units of the product, "Talking Kitty" and incurred the following total costs: Direct materials Direct labor Variable production overhead Fixed production overhead Other fixed overheads RM 32,000 24,000 8,000 16,000 4,000 Each "Talking Kitty" is sold for RM20.00 There was no opening inventory of finished goods at 1* September 2020, and only 7,500 units were sold in the month of September 2020. (v) Prepare a statement reconciling the profit from (iii) with your profit from (iv). (vii) The directors of Child Toys Company have discovered that RM8,000 fixed production overhead was incorrectly analyzed as direct materials. Explain the effect that this error will have on contribution and profit when using marginal costing

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