HONGTIST Co. have segment C and segment U. During the past years, 50,000 and 20, 000 were produced from segment C and U respectively. Fixed cost for HONGTIST totaled 225,000 of which 90, 000 can be avoided if segment U is dropped and 45,000 can be avoided if segment C is dropped. The selling price for segment C and U are P25 and P50, respectively. The variable cost of segment C and U are P15 and P45, respectively. 1. Compute for the increase/(decrease) on HONGTIST Co. if Segment U is dropped. 2. Compute the segment margin of segment C.

HONGTIST Co. have segment C and segment U. During the past years, 50,000 and 20, 000 were produced from segment C and U respectively. Fixed cost for HONGTIST totaled 225,000 of which 90, 000 can be avoided if segment U is dropped and 45,000 can be avoided if segment C is dropped. The selling price for segment C and U are P25 and P50, respectively. The variable cost of segment C and U are P15 and P45, respectively. 1. Compute for the increase/(decrease) on HONGTIST Co. if Segment U is dropped. 2. Compute the segment margin of segment C.

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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