A company manufactures and sells a single product.In two consecutive months the following levels of production and sales (in units) occurred:

The opening inventory for Month 1 was 400 units. Profits or losses have been calculated for each month using both absorption and marginal costing principles.

Which of the following combination of profits and losses for the two months is consistent with the above data?

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Month 1 Month 2 Sales Production 4400 3800 4 200 3900 Absorption costing profit/(loss) Marginal costing profit/(loss) Month 1 Month 2 Month 1 Month 2 ($) ($) ($) ($) (a) 200 4400 (400) 3200 (b) (400) 4400 200 3200 (c) 200 (d) (400) 3200 (400) 4400 3200 200 4400