Question: This is my question. Could you please explain it step by step. Thank you A company sells a product at a price of E150 per
This is my question. Could you please explain it step by step. Thank you

A company sells a product at a price of E150 per unit. The full production cost of the product is $100 per unit of which E25 per unit is fixed production overhead. The company manufactures 1,000 units during a period of which 950 units are sold in that period. What will be the difference between the profit measured on absorption costing compared to the profit measured on a variable costing basis? A Absorption costing profit will be E1,250 greater than variable costing profit B Absorption costing profit will be E2,500 greater thanariable costing profit. C Variable costing profit will be $2,500 greater than absorption costing profit D Variable costing profit will be E1,250 greater than absorption costing profit
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