Budgeted costs and revenues ($ per unit):

Sales price:                                    100

Variable production costs:           36

Fixed production costs:                20

The company uses absorption costing. In

the most recent period, 4,000 units were produced and 3,000 units were sold.

Actual sales price variable costs and fixed production costs agreed to

budgeted. Fixed production costs were over-absorbed by $2,000. There was no

opening inventory.

If the company had used variable costing instead of

absorption costing, the profit would be: