A company manufactures a single product. The budgeted income statement for the next period, which has...

  

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A company manufactures a single product. The budgeted income statement for the next period, which has been prepared using absorption costing principles, is as follows. S'000 $'000 Sales 4,400 Production costs (45,000 units) Variable 1,800 Fixed 1,476 3,276 Less: Closing inventory (5,000 units) (364) (2,912) Gross profit 1,488 Variable selling costs 360 Fixed administration and selling costs 598 (958) Profit 530 There is no opening inventory. What would be the contribution for the next period if marginal costing is used instead of absorption costing? A. $2,240,000 B. $2,440,000 C. $2,600,000 D. $2,800,000 A company manufactures a single product. The budgeted income statement for the next period, which has been prepared using absorption costing principles, is as follows. S'000 $'000 Sales 4,400 Production costs (45,000 units) Variable 1,800 Fixed 1,476 3,276 Less: Closing inventory (5,000 units) (364) (2,912) Gross profit 1,488 Variable selling costs 360 Fixed administration and selling costs 598 (958) Profit 530 There is no opening inventory. What would be the contribution for the next period if marginal costing is used instead of absorption costing? A. $2,240,000 B. $2,440,000 C. $2,600,000 D. $2,800,000