Blob Co. sells 4,000 pairs of running shoes that it produces per year. The following data were from its 2022 operations. Blob production facility operates at 80% capacity. It also leases the unused part of its production floor at P10,000 per month. If the remaining capacity is utilized, the lease contract would have to be ended. At what purchase price offered by Delta would Blob be indifferent in accepting the special order of 1,500 units? Sales Variable costs Contribution margin Fixed costs Net operating income O P301.97 P309.17 P391.07 O P307.19 P1,250,000 (750,000) 500,000 (250,000) P250,000

Blob Co. sells 4,000 pairs of running shoes that it produces per year. The following data were from its 2022 operations. Blob production facility operates at 80% capacity. It also leases the unused part of its production floor at P10,000 per month. If the remaining capacity is utilized, the lease contract would have to be ended. At what purchase price offered by Delta would Blob be indifferent in accepting the special order of 1,500 units? Sales Variable costs Contribution margin Fixed costs Net operating income O P301.97 P309.17 P391.07 O P307.19 P1,250,000 (750,000) 500,000 (250,000) P250,000

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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