The business started with no opening inventory. During one month, it made $4000$ units and sold $3500$ units. The information below is given: Selling price per unit $= 70$. Variable cost per unit $= 30$. Fixed cost per unit $= 15$. How would inventory value and profit differ under absorption costing and marginal costing?
- AInventory value: absorption costing higher by $7500$; Profit: absorption costing higher by $7500$
- BInventory value: absorption costing higher by $7500$; Profit: absorption costing lower by $7500$
- CInventory value: marginal costing higher by $7500$; Profit: marginal costing higher by $7500$
- DInventory value: marginal costing higher by $7500$; Profit: marginal costing lower by $7500$