Question 1:

Shalom Company has a product that sells for P20 per unit. The variable expenses are P12 per unit, and fixed expenses total P30,000 per year. If total sales increase by $20,000 and fixed expenses remain unchanged, by how much would net operating income be expected to increase?

Question 2:

Determine if the following costs of Shalom Manufacturing Company are product (identify immediately as direct cost, direct labor or overhead) or period cost. *

A. Depreciation on plant

B. Factory supplies used