[kpac22]

Sir, would you kindly explain to me how this should be worked out please?

A company manufactures and sells a single product. next year the budgeted total fixed production costs are $480,000. budgeted sales are 24,000 units and budgeted production is 25,000 units. The budgeted profit for next year using absorption costing principles is $57,500

What is the budgeted profit for next year using marginal costing principles?

Thanks !

[Author]

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