14: Multiple Choice Problem ABC Company makes the plugs it uses in one of its products at a Cost of P36 per unit. This cost includes P8 of fixed overhead. ABC needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to ABC at P33 per unit. If ABC decides to purchase the plugs, P60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. 1)If ABC Company purchases the plugs but does not rent the unused facility, the company would: a, save P3.00 per unit. b. lose P6.00 per unit. C. save P6.00 per unit. lose P3.00 per unit.

14: Multiple Choice Problem ABC Company makes the plugs it uses in one of its products at a Cost of P36 per unit. This cost includes P8 of fixed overhead. ABC needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to ABC at P33 per unit. If ABC decides to purchase the plugs, P60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. 1)If ABC Company purchases the plugs but does not rent the unused facility, the company would: a, save P3.00 per unit. b. lose P6.00 per unit. C. save P6.00 per unit. lose P3.00 per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 7EB: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has...

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