Angel Company expects to sell 500,000 units in 2021 at P50 per unit. Variable manufacturing costs in producing the product amount to P20 per unit and fixed manufacturing costs amount to P12.50 per unit. A special order from Devil Company of 50,000 units were made at an offered price of P28.75 per unit. Regular sales from customers will not be affected from this transaction. However, in order to meet the specifications and requirements of Devil Company, overtime pay would be incurred amounting to P3.75 per unit. Determine the effect in income when the special order is accepted. Indicate whether increase or decrease A. 250,000 increase B. 375,000 decrease C. 437,500 increase D. 187,500 decrease

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Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

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Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

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