Economics · Absorption and Marginal Costing
A manufacturing company has budgeted the following information for the next period: Production: 14,000 units Fixed production costs: $63,000 Sales: 12,000 units Fixed selling costs: $12,000 The normal level of activity is 14,000 units per period. Using absorption costing, the profit for the next period has been calculated as $36,000. What would be the profit for the next period using marginal costing?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$24,000
- 2$45,000
- 3$36,000
- 4$27,000✓
Correct answer
$27,000
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