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Japan Co. is a highly successful engineering company that manufactures filters for air-conditioning systems. Due to its classification with the quality of the filters currently

Japan Co. is a highly successful engineering company that manufactures filters for air-conditioning systems. Due to its classification with the quality of the filters currently available, on January 1, 2008 it commercial a project to design a more efficient filter. The following notes record the events relating to that project. 2008 January Spent P145,000 on the salaries of company engineers and consultants who conducted basic tests on available filters with varying modifications. February Spent P165,000 on developing a new filter system, including the production of a basic model. It became obvious that the model in its

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