Question
Problem Australia Company has the following data for October 31, 2022: Per-unit fixed and variable manufacturing costs of P40 and P15, respectively. Variable selling
Problem Australia Company has the following data for October 31, 2022: Per-unit fixed and variable manufacturing costs of P40 and P15, respectively. Variable selling and administrative costs are P9 per unit. Consider the two independent cases that follow for the firm. Case A: Variable-costing net income, P110,000; sales, 6,000 units; production, 6,000 units Case B: Variable-costing net income, P178,000; sales, 7,500 units; production, 7,100 units Required: 1. Compute Salt's absorption-costing net income in Case A. 2. Compute Salt's absorption-costing net income in Case B.
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