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5. (5%) P co. Manufactures part G for use in its production cycle. The cost per unit for 10,000 units of part G are as

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5. (5%) P co. Manufactures part G for use in its production cycle. The cost per unit for 10,000 units of part G are as follows: Direct materials, P3; Direct labor, P15; Variable overhead, P6 and Fixed overhead, P8. V Co. Has offered to sell P Co. 10,000 units of part G for P30 per unit. If P Co accepts V Co.'s offer, the released facilities could be used to save P45,000 in relevant costs in the manufacture of Part H, In addit6ion, P5 per unit of the fixed overhead applied to part G would be totally eliminated. What alternative is more desirable and by what amount is it more desirable? 6. (5%) W Co. Sells product A at a selling price of P21 per unit. ws cost per unit on the full capacity of 200,000 units are as follows: Direct materials, P4; Direct labor, P5 and Overhead (2/3 of which is fixed) P6. A special order offering to buy 20,000 units was received from a foreign distributor. The only selling costs that would be incurred on this order would be P3 per unit for shipping. W has sufficient existing capacity to manufacture the additional units. W should consider that the minimum selling price per unit should be how much

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