MORPHLING CORP. is engaged in producing and selling 2 types of furniture,DELUXE and SUPREME. The two products are sold in a ratio of 2 units ofDELUXE to 3 units of SUPREME. Data concerning these products are asfollows:DELUXEP12SUPREMEP28Selling PriceUnit Variable Cost316MORPHLING CORP. has a total fixed cost of P600,000 per year and faces atax rate of 30%.Compute the volume of sales in units of DELUXE if the company plans to earn10 percent on sales revenue in before-tax income.a. 27,778 unitsb. 41,667 units50,000 unitsd. 32,143 unitsc.TIDE HUNTER CORP. is engaged in producing and selling a top-of-the linepencil holder with a selling price of P50.00 per unit. For its first month ofoperations, 4,000 units were produced and 3,200 units were sold. Actualfixed costs are the same as the amount budgeted for the month. TIDEHUNTER uses a normal activity of 5,000 units. Other information for themonth includes:Variable cost per unt Eixed costs in totalP40,000 per monthP10,000 per monthProduction costsP22P4.5Selling expensesAdministrative expensesWhat is the net income for the current month under absorption costing?A. 29,800B. 31,600C. 33,200D. 39,600What is the net income for the current month under variable costing?26,800C.23,400a.b.33,200d. 25,200

Morphling Corp. is engaged in producing two types of furniture - Deluxe and Supreme. The ratio of…

MORPHLING CORP. is engaged in producing and selling 2 types of furniture, DELUXE and SUPREME. The two products are sold in a ratio of 2 units of DELUXE to 3 units of SUPREME. Data concerning these products are as follows: DELUXE SUPREME P28 Selling Price P12 Unit Variable Cost 3 16 MORPHLING CORP. has a total fixed cost of P600,000 per year and faces a tax rate of 30%. Compute the volume of sales in units of DELUXE if the company plans to earn 10 percent on sales revenue in before-tax income. a. 27,778 units b. 41,667 units C. 50,000 units d. 32,143 units

MORPHLING CORP. is engaged in producing and selling 2 types of furniture, DELUXE and SUPREME. The two products are sold in a ratio of 2 units of DELUXE to 3 units of SUPREME. Data concerning these products are as follows: DELUXE SUPREME P28 Selling Price P12 Unit Variable Cost 3 16 MORPHLING CORP. has a total fixed cost of P600,000 per year and faces a tax rate of 30%. Compute the volume of sales in units of DELUXE if the company plans to earn 10 percent on sales revenue in before-tax income. a. 27,778 units b. 41,667 units C. 50,000 units d. 32,143 units

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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