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Last year, fixed manufacturing overhead was P30,000, variable production costs were P48,000, fixed selling and administration costs were P20,000 and variable selling administrative expenses were
Last year, fixed manufacturing overhead was P30,000, variable production costs were P48,000, fixed selling and administration costs were P20,000 and variable selling administrative expenses were P9,600. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units sold at a price of P40 per unit. Under variable costing, profit would be:
Select one:
a. a profit of P6,000
b. a loss of P4,400
c. a profit of P4,000
d. a loss of P2,000
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