Last month a manufacturing company's profit was $2,000, calculated using absorption costing principles. If marginal costing principles has been used, a loss of $3,000 would have occurred. The company's fixed production cost is $2 per unit. Sales last month were 10,000 units. What was last month's production (in units)?
A、7,500
B、9,500
C、10,500
D、12,500
A、7,500
B、9,500
C、10,500
D、12,500
【参考答案及解析】
Any difference between marginal and absorption costing profit is due to changes in inventory. $ Absorption costing profit 2,000 Marginal costing loss (3,000) Difference 5,000 Change in inventory = Difference in profit/fixed product cost per unit =$5,000/$2 = 2,500 units Marginal costing loss is lower than absorption costing profit therefore inventory has gone up -that is, production was greater than sales by 2,500 units. Production = 10,000 units (sales) + 2,500 units = 12,500 units
Any difference between marginal and absorption costing profit is due to changes in inventory. $ Absorption costing profit 2,000 Marginal costing loss (3,000) Difference 5,000 Change in inventory = Difference in profit/fixed product cost per unit =$5,000/$2 = 2,500 units Marginal costing loss is lower than absorption costing profit therefore inventory has gone up -that is, production was greater than sales by 2,500 units. Production = 10,000 units (sales) + 2,500 units = 12,500 units