Leonard International produces weekly 20,000 units of Product N and 40,000 units of Product B for which ₱900,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some information: PRODUCT N PRODUCT B Unit selling price without further processing ₱ 25 ₱ 18 Unit selling price with further processing ₱ 30 ₱ 22 Total separate weekly variable costs of further processing ₱ 100,000 ₱ 90,000 What is the incremental profit associated with Product N? Show solution Group of answer choices ₱ 70,000 ₱ 190,000 ₱ 0 ₱ 90,000
Leonard International produces weekly 20,000 units of Product N and 40,000 units of Product B for which ₱900,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some information: PRODUCT N PRODUCT B Unit selling price without further processing ₱ 25 ₱ 18 Unit selling price with further processing ₱ 30 ₱ 22 Total separate weekly variable costs of further processing ₱ 100,000 ₱ 90,000 What is the incremental profit associated with Product N? Show solution Group of answer choices ₱ 70,000 ₱ 190,000 ₱ 0 ₱ 90,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Leonard International produces weekly 20,000 units of Product N and 40,000 units of Product B for which ₱900,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some information:
|
PRODUCT N |
PRODUCT B |
|
|
Unit selling price without further processing |
₱ 25 |
₱ 18 |
|
Unit selling price with further processing |
₱ 30 |
₱ 22 |
|
Total separate weekly variable costs of further processing |
₱ 100,000 |
₱ 90,000 |
What is the incremental profit associated with Product N? Show solution
Group of answer choices
₱ 70,000
₱ 190,000
₱ 0
₱ 90,000
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