A firm has 3 departments and prepares operating statements using a marginal costing approach as follows (£000):

Recast the above statement using a total cost approach assuming that fixed costs are apportioned on the basis of marginal costs.

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A B C Total Sales 650 480 1420 2550 less Marginal costs 475 220 850 1545 = contribution 175 260 570 1005 less Fixed costs 850 = Profit 155