III. PROBLEM SOLVING. Solve for what is required in every number. 1. Deveza Cookies produces and sells boxed choco cookies. There are 100 pieces of cookies per box. The following income statement shows the results of Deveza's first year of operations. This income statement was the one included in the company's annual report to the stockholders: Sales (600 boxes at P25 per box) P15,000 Less cost of goods sold (600 boxes @ P16 per box) 6.900 Gross Margin P 5.400 Less selling and administrative expenses 2.400 Income P 3,000 Variable selling and administrative expenses is P1.80 per box. During the year, the company produced 750 boxes. Variable production costs is p10.50 per box and fixed manufacturing overhead costs totaled P4,125. Required: What is the company's variable costing net income? (10 points)