What are the correct answers to questions 1 and 2? Suppose in the preceding question, allinformation is the same except that thepresent sale volume to regularcustomers is 4,000 liters. Should ZCompany still accept the special order?Yes, because operating income wouldincrease by P45,000.00.Yes, because operating income wouldincrease by P9,000.00No, because operating income woulddecrease by P4,000.00*1 pNo, because operating income would be thesame. Z Company sells product called resin. Itreceived a special order for 1,500 litersof resin from A, a valued client of ZCompany. A asked for a 40% off of theregular selling price of P50.00 per liter.Pertinent data about the product resinare as follows:Normal plant capacity 5,000litersPresent sales volume tocustomers 3,500 litersProduction costs:MaterialsLaborFactory overhead:variablefixedThe special order will not requireadditional selling and administrativecosts and the same will not affectregular sales.P6,000.00 profitP6,000.00 lossP15.00 per literP5.00 per literQuestion: Should Z Company accept thespecial order, how much would be theincremental profit using differentialanalysis?P9,000.00 profitP4.00 per literP9,250.00P9,000.00 loss

Z Company is producing product called resin. The capacity of production of Z company is 5000 liters.…

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Business

Accounting

What are the correct answers to questions 1 and 2?

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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What is the correct answer to question 1 and 2?
SwissMiss Co. produces 2 products,Aand B with the following informationavailable:
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Please explain it properly
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