Which of the following statements regarding marginal and absorption costing are true in the context of pricing decisions?
Select ALL that apply.

LM operates a parcel delivery service. Last year its employees delivered 15,120 parcels and travelled
120,960 kilometers. Total costs were $194,400.
LM has estimated that 70% of its total costs are variable with activity and that 60% of these costs vary with the number of parcels and the remainder vary with the distance travelled.
LM is preparing its budget for the forthcoming year using an incremental budgeting approach and has produced the following estimates:
* All costs will be 3% higher than the previous year due to inflation
* Efficiency will remain unchanged
* A total of 18,360 parcels will be delivered and 128,800 kilometers will be travelled.
Calculate the following costs to be included in the forthcoming year's budget:
(i) the total variable costs related to the number of parcels delivered.
(ii) the total variable costs related to the distance travelled.

A company has only 10,100 hours of skilled labour available next period.
Data for its three products for next period are as follows.

At least 500 units of each product must be sold each period.
No inventories are held.
How many units of Product X should be manufactured next period in order to maximise profit?

A manufacturing company sells 5 different products.
The company holds no inventories and has a high level of fixed cost.
Place against the statements below the comment "needed" or "not needed" to select ALL of the information required to calcuate the total number of units to break-even.

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?