Last month a manufacturing companys profit was $2000, calculated using absorption costing principles. If marginal costing principles

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Last month a manufacturing company’s profit was $2000, calculated using absorption costing principles. If marginal costing principles had been used, a loss of $3000 would have occurred. The company’s fixed production cost is

$2 per unit. Sales last month were 10000 units.

What was last month’s production (in units)?

(a) 7500

(b) 9500

(c) 10500

(d) 12500

(2 marks)

ACCA Financial Information for Management

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Cost And Management Accounting

ISBN: 9781473749054

9th Edition

Authors: Colin Drury

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Question Posted: Jun 25, 2024 02:00 AM

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Last month a manufacturing companys profit was $2000, calculated using absorption costing principles. If marginal costing principles

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Cost And Management Accounting

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