Exe Limited makes a single product whose total cost per unit is budgeted to be £45. This includes fixed cost of £8 per unit based on a volume of 10 000 units per period. In a period, sales volume was 9000 units, and production volume was 11 500 units. The actual profit for the same period. Calculated using absorption costing, was £42 000.
If the profit statement were prepared using marginal costing, the profit for the period
A would be £10 000
B would be £22 000
C would be £50 000
D would be £62 000
E cannot be calculated without more information
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