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Freedom, Inc. management has performed cost studies and projected the following annual costs based on 40,000 units of production and sales: Percentage Total of

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Freedom, Inc. management has performed cost studies and projected the following annual costs based on 40,000 units of production and sales: Percentage Total of Total Annual Annual Costs Costs that is variable Direct P400,000 100% Material Direct Labor 360,000 75 Manufacturing FOH 300,000 40 Selling and Administrative 200,000 25 Expenses

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