A company manufactures a single product. The cost card for a unit of this product is as follows:
During month 6, finished goods inventory increased by 350 units.
By how much would the profit differ in month 6 if finished goods inventory was valued at standard marginal cost rather than standard absorption cost?
A. $1,050 lower
B. $1,050 higher
C. $2,450 lower
D. $2,450 higher
Answer: A
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