Negros Corporation produces handkerchiefs or hankies. The cloth needed to make the hankies are purchased at P20 per yard but Negros' supplier gives a P50 trade discount for every 50 yards purchased. Also, the supplier offers a 2/10, n/30 credit term. Negros' spends around P2,500 in shipping expenses annually. Receiving costs amount to P2 per yard. When the cloths are being cut, 10% of total input is loss through scrap while every 21st hanky is rejected during final inspection stage. A unit of hanky contains around 0.18 yards of cloth and 3,000 hankies are expected to be produced annually.

Questions:

a. What is the standard quantity (in yards) per unit of handkerchief?

b. What is the standard price per yard of cloth?