A company has two products with the following unit costs for a period: Production and sales of the two products for the period were Production was at normal levels. Unit costs in opening stock were the same as those for the period listed above. Required: (a) State whether, and why, absorption or marginal costing would show a higher company profit for the period, and calculate the difference in profit depending upon which method is used. (b) Calculate the break-even sales revenue for the period (to the nearest £000) based on the above mix of sales. The selling prices of products A and B were £5.70 and £6.90 per unit, respectively.
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