The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line? Indicate the produ

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 7MC: What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is...
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The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line? Indicate the product

 
TIC
ТАС
Тос
SALES
6,600,000.00 5,300,000.00 10,800,000.00
VARIABLE COSTS
3,900,000.00 1,700,000.00
8,900,000.00
Transcribed Image Text:TIC ТАС Тос SALES 6,600,000.00 5,300,000.00 10,800,000.00 VARIABLE COSTS 3,900,000.00 1,700,000.00 8,900,000.00
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