Problem 2 Houston Company has per-unit fixed and variable manufacturing costs of P40 and P15, respectively. Variable selling and administrative costs are P9 per unit. Consider the two cases that follow for the firm. Case A: Variable-costing operating income, P110,000; sales, 6,000 units; production, 6,000 units Case B: Variable-costing operating income, P178,000; sales, 7,500 units; production, 7,100 units REQUIRED: 1. Compute Houston's absorption-costing operating income in Case A