MA FA. Chapter 10, Quiz, Question 5

I assume that you have watched my free lectures, in which case you will know that the only difference ever between the marginal and the absorption profits is the change in the inventory multiplied by the fixed overhead absorption rate. Given that they produced 2,000 units more than they sold, the inventory must have increased by 2,000 units. The absorption rate is $63,000/14,000 = $4.50 per unit. Therefore the profits are different by 2,000 x $4.50 = $9,000.