Plack Company is a manufacturing company that makes and sells a single product. The following information relates to the
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Plack Company is a manufacturing company that makes and sells a single product. The following information relates to the
Plack Company is a manufacturing company that makes and sells asingle product. The following information relates to the company’smanufacturing operations in the next financial year.Opening and closing stock: NilProduction: 18,000 unitsSales: 15,000 unitsFixed production overheads: R117,000Fixed sales overheads: R72,000Using absorption costing, the company has calculated that thebudgeted profit for the year will be R43,000.Required:What would be the budgeted profit if marginal costing is used,instead of absorption costing?