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?
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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