5,000. which normally sells for P35 per unit. Costs associated with the manager has received a special order for 5,000 units of product, ABC Company is currently operating at a loss of P15,000. The sales product are: direct material, P6; direct labor, P10; variabie overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. 16) If ABC wants this special order to increase the total net income for the firm to P10,000, what sales price must be quoted for each of the 5,000 units? a. P23.50 b. P24.50 C. P27.50 d. P34.00

5,000. which normally sells for P35 per unit. Costs associated with the manager has received a special order for 5,000 units of product, ABC Company is currently operating at a loss of P15,000. The sales product are: direct material, P6; direct labor, P10; variabie overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. 16) If ABC wants this special order to increase the total net income for the firm to P10,000, what sales price must be quoted for each of the 5,000 units? a. P23.50 b. P24.50 C. P27.50 d. P34.00

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2.3P

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