XYZ, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units a P15 per unit Production costs: Variable: P4 per unit Fixed: P260,000 Selling and administrative costs: Variable: P1 per unit Fixed: P32,000

XYZ, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units a P15 per unit Production costs: Variable: P4 per unit Fixed: P260,000 Selling and administrative costs: Variable: P1 per unit Fixed: P32,000

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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Question

1. The net income before tax that the company would disclose on an absorption-costing income statement is?

2. The contribution margin that the company would disclose on an absorption-costing income statement is?

XYZ, which began business at the start of the current year, had the
following data:
Planned and actual production: 40,000 units
Sales: 37,000 units a P15 per unit
Production costs:
Variable: P4 per unit
Fixed: P260,000
Selling and administrative costs:
Variable: P1 per unit
Fixed: P32,000

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