Silver Company’s projected income statement for the month before any special order is as follows: Sales P 96,000 Less: Variable costs and expenses 62,640 Contribution margin 33,360 Less: Fixed Costs & Expenses 21,360 The company’s income statement was based on an expected sale of 4,800 units. A special order offering to buy 480 units for P17 each was made to Silver Company. No additional selling expenses will be incurred if the special order is accepted. Silver’s capacity can still accommodate to manufacture 480 units As a result of the special order, by how much would income increase? 1. P240 decrease 2. P1,680 increase 3. P1,896 increase 4. P2,400 increase
Silver Company’s
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Sales P 96,000 Less: Variable costs and expenses 62,640 Contribution margin 33,360 Less: Fixed Costs & Expenses 21,360 |
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The company’s income statement was based on an expected sale of 4,800 units. A special order offering to buy 480 units for P17 each was made to Silver Company. No additional selling expenses will be incurred if the special order is accepted. Silver’s capacity can still accommodate to manufacture 480 units
As a result of the special order, by how much would income increase?
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1. |
P240 decrease |
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2. |
P1,680 increase |
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3. |
P1,896 increase |
|
4. |
P2,400 increase |
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