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ManAcc3: Relevant costing 1. Differential Analyses Otso Deretso has single product called Weh. The company currently sells 8,000 units of Weh at P40.00 per unit
ManAcc3: Relevant costing 1. Differential Analyses Otso Deretso has single product called Weh. The company currently sells 8,000 units of Weh at P40.00 per unit The company's costs at this level of activity are given below: Variable costs: Fixed costs: Direct Materials P10.00 Fixed Overhead 50,000 Direct Labor P 8.00 Fixed selling expenses 30,000 Variable Overhead P 5.00 Variable Selling Expenses P2.00 Required: a. What is the company's profit if it sells, 8,000 units of Weh? b. The company could increase its sales by 25% if it spends 20,000 for Weh's advertisements. Determine the effect on company profit using: 1. Total Analysis 2. Differential Analysis
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