5,000. which normally sells for P35 per unit. Costs associated with the manager has received a special order for 5,000 units of product, ABC Company is currently operating at a loss of P15,000. The sales product are: direct material, P6; direct labor, P10; variabie overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. 16) If ABC wants this special order to increase the total net income for the firm to P10,000, what sales price must be quoted for each of the 5,000 units? a. P23.50 b. P24.50 C. P27.50 d. P34.00

5,000. which normally sells for P35 per unit. Costs associated with the manager has received a special order for 5,000 units of product, ABC Company is currently operating at a loss of P15,000. The sales product are: direct material, P6; direct labor, P10; variabie overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. 16) If ABC wants this special order to increase the total net income for the firm to P10,000, what sales price must be quoted for each of the 5,000 units? a. P23.50 b. P24.50 C. P27.50 d. P34.00

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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