NUBD Co.'s unit cost of manufacturing and selling a given item at an activity level of 10,000 units per month are: Manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead Selling expenses Variable Fixed P39 9. 8. 9. 30 11 The company desires to seek an order for 5,000 units from a foreign customer. The variable selling expenses will be reduced by 40%, but the fixed costs for obtaining the order will be P20,000. Domestic sales will not be affected by the order.

NUBD Co.'s unit cost of manufacturing and selling a given item at an activity level of 10,000 units per month are: Manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead Selling expenses Variable Fixed P39 9. 8. 9. 30 11 The company desires to seek an order for 5,000 units from a foreign customer. The variable selling expenses will be reduced by 40%, but the fixed costs for obtaining the order will be P20,000. Domestic sales will not be affected by the order.

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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The cost accountant of Sacramento Company provided you the 2019 and 2020 selling price per unit, variable cost per unit and total fixed costs as follows: (2019: P20; P12; P50,000) and (2020: P22; P13.20; P50,000). What is the effect in changes in selling prices and variable costs to break-even volume from 2019 to 2020? * Insufficient data to determine the effect in break-even volume. Decrease in break-even volume. Increase in break-even volume. No change in break-even volume.
Please solve accurately. Thank you
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