Ticktock Ltd makes clocks with a selling price of $50 per clock. Budgeted production and sales volume
is 1,000 clocks per month. During September 1,000 clocks were made and 800 clocks were sold. There
was no opening inventory.
The variable cost per clock is $25. Fixed costs in September were, as budgeted, $5,000.
Using marginal costing the contribution and profit for September would be calculated as
