1.The following details have been extracted from KLs budget (3 points):

Selling price per unit - 135 $

Variable production costs per unit 45 $

Total fixed costs 350 000 $

Selling variable costs per unit 10 $

Selling fixed costs 40 000 $

Production volume (units) 10 000

Sales volume (units) 9800

There was no closing inventory at the end of previous period

a) Calculate the profit using absorption costing (1 point)

b) Calculate the profit using direct costing (1 point)

c) Reconcile the profit (1 point).