29. Walastic Corporation manufactures tennis balls. The forecasted income statement for the year before any special orders is as follows; Per Unit Sales Cost of goods sold Gross profit Selling expenses Profit Amount P4,000,000 P 10.00 3.200.000 800,000 300.000 P 500.000 P 125 8.00 2.00 0.75 Fixed costs included in the above forecasted income statement are P1,200,000 in cost of goods sold and P100,000 in selling expenses.. A special order offering to buy 50,000 tennis balls for P7.50 each was madeto Walastic. There will be no additional fixed selling expenses if the special order is accepted. Assuming Walastic has sufficient capacity pEto manufacture 50,000 more tennis balls, by what amount would operating income be increased or decreased as a result of accepting the special order? P 25,000 decrease. b. P 62,500 decrease. P100,000 increase. d. P125,000 increase. а.

29. Walastic Corporation manufactures tennis balls. The forecasted income statement for the year before any special orders is as follows; Per Unit Sales Cost of goods sold Gross profit Selling expenses Profit Amount P4,000,000 P 10.00 3.200.000 800,000 300.000 P 500.000 P 125 8.00 2.00 0.75 Fixed costs included in the above forecasted income statement are P1,200,000 in cost of goods sold and P100,000 in selling expenses.. A special order offering to buy 50,000 tennis balls for P7.50 each was madeto Walastic. There will be no additional fixed selling expenses if the special order is accepted. Assuming Walastic has sufficient capacity pEto manufacture 50,000 more tennis balls, by what amount would operating income be increased or decreased as a result of accepting the special order? P 25,000 decrease. b. P 62,500 decrease. P100,000 increase. d. P125,000 increase. а.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nn1.
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