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$1\mathrm{.}3$ Explain fully why the profits reported in period $1$ differ when profit is calculated using absorption costing and marginal costing. Calculations are required to support your explanation.

Statement of comprehensive income period $1$&$2$ using marginal costing

$\backslash$table$[[,$Period $1,$Period $2],[$Units sold,$11600,12400],[$Sales$,98600,105400],[$Variable cost$,(42920),(45880)$