There was an increase in inventory in the period; therefore the absorption costing profit is higher than the marginal costing profit (because a larger amount of fixed overhead is carried forward in the closing inventory value).
?????????????????????????????????????????????????????????????????????????????????????????????????? ?$
Marginal costing profit???????????????????????????????????????????????????????????? 72,300
Less: fixed costs in opening inventory (300 units x $5)????????? (1,500)
Add: fixed costs in closing inventory (750 units x $5)???????????? ?3,750
Absorption costing profit???????????????????????????????????????????????????????? 74,550