PROBLEM SOLVING 1. ABC Mfg. Co. buy and sells its lone product on which the following data are given: A special order is received for P2,000 units from a remote market at P7.90,FOB destination. Packing and shipping costs are estimated at P1,200. Decision making: (show computation) a. Should the order be accepted? Why? b. What is the BEP price or sales cut-off price for the special order? 2. Use the data given in ABC Mfg. Co. (No. 1) and assume that Golden Mfg. Company has offered to produce the product (25,000 units) for P8.00 per unit. If the offer is accepted, savings in fixed factory overhead are estimated at 40% Decision making: (show computation) a. Should ABC continue making or just buy its products? Why? b. How much is the purchase cut-off price? Computation