Question
25 1.2 pts Antoine Company expects to sell 500,000 units in 2020 at Php50 per unit. Variable manufacturing costs in producing the products amount to
25 1.2 pts Antoine Company expects to sell 500,000 units in 2020 at Php50 per unit. Variable manufacturing costs in producing the products amount to Php20 per unit and fixed manufacturing costs amount to Php12.50 per unit. Special order from Corn Company of 50,000 units was made at an offered price of Php28.75 per unit. Regular sales from customers will not be affected by this transaction. However, in order to meet the specifications and requirements of Corn Company, overtime pay would be incurred amounting to Php3.75 per unit. Determine the effect in income when the special order is accepted. Indicate whether increase or decrease. Php 437,500 increase Php 187,500 decrease Php 250,000 increase Php 375,000 decrease
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