The Alpha Company produces microchips used in cellphones. Each microchip is priced at P45 and the company sells 500,000 microchips per year. The unit cost data for the year 2020 is given below: fixed-- .variable direct materials- 12 direct labor.. 10 factory overhead- distribution costs- The business received an offer from a foreign buyer to purchase 50.000 microchips. Local sales will not be affected by this transaction. The offer price is P37. If the offer is accepted, variable distribution costs will increase by P2 per mierochip for shipping insurance and export import duties. The company has the capacity to produce the offer. What is the relevant costs fr this offer:

The Alpha Company produces microchips used in cellphones. Each microchip is priced at P45 and the company sells 500,000 microchips per year. The unit cost data for the year 2020 is given below: fixed-- .variable direct materials- 12 direct labor.. 10 factory overhead- distribution costs- The business received an offer from a foreign buyer to purchase 50.000 microchips. Local sales will not be affected by this transaction. The offer price is P37. If the offer is accepted, variable distribution costs will increase by P2 per mierochip for shipping insurance and export import duties. The company has the capacity to produce the offer. What is the relevant costs fr this offer:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 5DQ

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May I ask for an explanation and solution to the question for a better understanding. Thank you! 19. Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000, Unit Price - P10, Unit Cost - P8; Product Two: Units sold - 20,000, Unit Price - P8, Unit Cost - P7; Product Three: Units Sold - 5,000, Unit Price - P6, Unit Cost - 4.50. 2020 = Product One: Units Sold - 20,000, Total Price - P240,000, Total Cost - P180,000; Product Two: Units Sold - 20,000, Total Price - P180,000, Total Cost - P150,000; Product Three: Units Sold - 4,000, Total Price - P20,000, Total Cost - P16,000. The Sales Price factor shows a variance of: a. P56,000 F b. P56,000 U c. P100,000 F d. P100,000 U
May I ask for an explanation and solution to the question for a better understanding. Thank you! 20. Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000, Unit Price - P10, Unit Cost - P8; Product Two: Units sold - 20,000, Unit Price - P8, Unit Cost - P7; Product Three: Units Sold - 5,000, Unit Price - P6, Unit Cost - 4.50. 2020 = Product One: Units Sold - 20,000, Total Price - P240,000, Total Cost - P180,000; Product Two: Units Sold - 20,000, Total Price - P180,000, Total Cost - P150,000; Product Three: Units Sold - 4,000, Total Price - P20,000, Total Cost - P16,000. The Cost Price factor shows a variance of: a. P28,000 F b. P28,000 U c. P100,000 F d. P100,000 U
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Q. 2 A company contemplating the acceptance of a special order has the following unit costs based on 10,000 units:
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