Roger Corp. Roger Corp., which has experienced excess production capacity, received a specialoffer for its product B at P78 per unit for 100,000 units. It has been using the variablecosting method and has been pricing its product at P96 per unit based on a mark-up of60% as follows:Direct materialsP30Direct laborP20Variable overheadP6Variable selling & administrativeP4Total variable expensesP6060% mark-upP36Selling priceP96Assuming that this special offer will not affect the regular market for the product,should the company accept the special offer?No, since it will mean a loss of P1.16 millionYes, since it will contribute P1.8 million marginYes, since it will contribute P2.8 million marginO No, since it will mean a loss of P1.8 million

Introduction:- Roger Corp., which has experienced excess production capacity, received a special…

Answered: Assuming that this special offer will…

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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Assuming that this special offer will not affect the regular market for the product, should the company accept the special offer? No, since it will mean a loss of P1.16 million Yes, since it will contribute P1.8 million margin Yes, since it will contribute P2.8 million margin