J&J Music Builders is a new business in the industry. Currently, they are producing and selling bamboo organs and flutes. They are planning to add guitar to their instruments. Based on the study conducted, the following are cost data related to the creation of conventional and electric guitars: Conventional P1,200/unit 1,800/unit 16,000 Electric P1,800/unit 450/unit 47,970 Direct materials Direct labor Fixed factory overhead Variable factory overhead 240/unit Variable selling expense 720/unit 120/unit 80/unit Compute for the number of guitar sales which would give J&J the same operating income when they choose either of the alternative presented above.

J&J Music Builders is a new business in the industry. Currently, they are producing and selling bamboo organs and flutes. They are planning to add guitar to their instruments. Based on the study conducted, the following are cost data related to the creation of conventional and electric guitars: Conventional P1,200/unit 1,800/unit 16,000 Electric P1,800/unit 450/unit 47,970 Direct materials Direct labor Fixed factory overhead Variable factory overhead 240/unit Variable selling expense 720/unit 120/unit 80/unit Compute for the number of guitar sales which would give J&J the same operating income when they choose either of the alternative presented above.

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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