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Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? O P 10.50 O P3.75 O P8.75 O P9.50

Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? O P 10.50 O P3.75 O P8.75 O P9.50

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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What selling price will earn a gross profit of P 2.50 per unit under absorption costing?

Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? P 10.50 O P3.75 O P8.75 O P9.50
Transcribed Image Text:Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? P 10.50 O P3.75 O P8.75 O P9.50
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