Product W can be sold at the split-off point for P5.60 per unit. Product P either can be sold at the split-off point for P4.75 per unit or it can be further processed and sold for P7.20 per unit. If P is processed further, additional processing costs of P3.10 per unit will be incurred. 11) If P is processed further and then sold, rather than being sold at the split-off point, the change in monthly net operating income would be a: a. P147,000 decrease c. P39,000 increase b. P147,000 increase d. P39,000 decrease 2What would the selling price per unit of Product P need to be arter processing in order for ABC Company to be economically

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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or it can be further processed and sold for P7.20 per unit. If P is
Product P either can be sold at the split-off point for P4.75 per unit
Product W can be sold at the split-off point for P5.60 per unit.
Product P either can be sold at the split-off point for P4./5 per unit
or it can be further processed and sold for P7.20 per unit. If P is
processed further, additional processing costs of P3.10 per unit will
be incurred.
11) If P is processed further and then sold, rather than being sold
at the split-off point, the change in monthly net operating
income would be a:
a. P147,000 decrease c. P39,000 increase
b. P147,000 increase d. P39,000 decrease
12) What would the selling price per unit of Product P need to be
after processing in order for ABC Company to be economically
indifferent between selling P at the split-off point or processing P
further?
a. P7.85
b. P8.58
C. P9.49
d. P11.68
Knox Co
Transcribed Image Text:or it can be further processed and sold for P7.20 per unit. If P is Product P either can be sold at the split-off point for P4.75 per unit Product W can be sold at the split-off point for P5.60 per unit. Product P either can be sold at the split-off point for P4./5 per unit or it can be further processed and sold for P7.20 per unit. If P is processed further, additional processing costs of P3.10 per unit will be incurred. 11) If P is processed further and then sold, rather than being sold at the split-off point, the change in monthly net operating income would be a: a. P147,000 decrease c. P39,000 increase b. P147,000 increase d. P39,000 decrease 12) What would the selling price per unit of Product P need to be after processing in order for ABC Company to be economically indifferent between selling P at the split-off point or processing P further? a. P7.85 b. P8.58 C. P9.49 d. P11.68 Knox Co
d.
ABC Company makes two products, W and P, in a joint process, At
the split-off point, 50,000 units of W and 60,000 units of P are
available each month. Monthly joint production costs are P290 000
Transcribed Image Text:d. ABC Company makes two products, W and P, in a joint process, At the split-off point, 50,000 units of W and 60,000 units of P are available each month. Monthly joint production costs are P290 000
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