The overhead absorption for product P is N$4 per machine hour. Each unit of P requires 3 machine hours. Inventories of product P last period were:

	Units
Opening inventory	2 400
Closing inventory	2 700

Compared with marginal costing profit for the period, the absorption costing profit for product P will be which of the following?

Select one:

a. N$3 600 higher

b. N$1 200 higher

c. N$1 200 lower

d. N$3 600 lower

e. None of all