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Answer only 1. Kiko Corporation's fixed manufacturing costs are P40 per unit and variable manufacturing costs are P120 per unit. Production during the period were
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Kiko Corporation's fixed manufacturing costs are P40 per unit and variable manufacturing costs are P120 per unit. Production during the period were 125,000 units and the total operating expenses for the year amounted to P200.000. Assuming there is no beginning inventory and only 15,000 units were remained unsold from production during the year, how much is the difference between variable costing and absorption costing income from operation in peso?Galactic Company makes and sells a popular household product and its annual sales average 20,000 units at P 85 each . Details of unit cost are as follows: Direct materials P 25 Variable Overhead 12 Direct labor 15 Fixed Overhead 10 Annual fixed administrative and selling expenses P100,000 ; variable selling expenses per unit , P 8. Sales depend mostly on customers traveling along road in front of the company, but because of road construction which will take three months to complete, sale are expected to go down to 1,200 units during the construction period. Hence management plans to close for 3 months and avoid 60% of all fixed costs but additional shutdown costs of P10.000 will be incurred for security and minimum maintenance The shutdown point in units isStep by Step Solution
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