Liberty Co$.,$ one of the respected companies in the city, reported M$86,104\mathrm{.}00$ as a profit in the past

reporting period. Company's management requested a clarification on the difference between marginal

costing and absorption costing. As part of that exercise, profit reconciliation would be required.

The following information has been given;

Product's cost card

Direct materials

M$40\mathrm{.}00$

Conversion costs

M$71\mathrm{.}60$

Fixed Costs

M$115\mathrm{.}20$

Full Production costs

M$226\mathrm{.}80$

Further Information

Production

$24,7740$ units

Sales

$24,500$ units

Closing Stock

$570$ units

Required;

Calculate profit to be reported under marginal costing technique. $(4$ Marks$)$