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The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost Projected sales A P50 P34 5,000 units B 20 15 25,000 units C 25 16 20,000 units Fixed costs amounted to P154,000. Instructions: 2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?

The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost Projected sales A P50 P34 5,000 units B 20 15 25,000 units C 25 16 20,000 units Fixed costs amounted to P154,000. Instructions: 2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?

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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The following pertained to Lomi Inc.:

Product               Sales Price          Unit Variable Cost           Projected sales

A                               P50                                   P34                       5,000 units

B                                  20                                    15                        25,000 units

C                                  25                                    16                        20,000 units

 

Fixed costs amounted to P154,000.

Instructions:

2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?

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