1.) ABC Company has 12,000 units capacity and projected to produce and sell 10,000 units at P60 per unit for Year 2020. Standard budgeted cost per unit: variable cost P22.50 and fixed cost P14.50. Sometime 3rd quarter of 2020 there is a special order for 500 units for P45 selling price.

Should the company accept the special order, and why? What could be the implications?

2.) The total estimated sales for the coming year is 260,000 units. The estimated inventory at the beginning of the year is 32,500 units, and the desired inventory at the end of the year is 50,000 units. What is the total production units to be indicated in the production budget?

3.) Datan Company expects $550,000 of credit sales in March and $600,000 of credit sales in April. Datan Company historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Datan Company expect to collect in April?