Assume the following data for the month of May for Diwata Company which produces a necessity product which sells at P18 per unit. Normal capacity is 5,000 units per month Variable Costs/unit Fixed Costs/annum Prime Costs Fixed overhead Variable overhead Fixed expenses Variable Expenses P5.00 P312,000 3.20 48,000 1.80 In the coming month, only 2,000 units are expected to be sold. If the company will close the business next month, fixed overhead for the period will be reduced to 10,000 but the fixed expenses will be the same. Additional costs of P1,000 will be incurred when operations resume. 6. Should the company continue or shutdown its operation for next month? Why? 7. What is the shutdown point (units) for one month? KC Company operating at 80% capacity is selling 25,000 units of its product at a price of P36 per unit. The following are the costs per unit at normal capacity: Prime Costs Manufacturing overhead (including fixed of P5) Variable Selling Expenses Administrative expense (all fixed) A special order for 8,000 units is received at a price of P22. No Selling expenses will be incurred for this special order. P15.80 9.00 2.20 1.25 5. Should the company accept the special order? Why?