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NUBD Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for NUBD would

NUBD Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for NUBD would

FINANCIAL ACCOUNTING
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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NUBD Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for NUBD would * Do not use money sign. Sample format: 1,111,111 or (1,111,111)
Transcribed Image Text:NUBD Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for NUBD would * Do not use money sign. Sample format: 1,111,111 or (1,111,111)
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