su iskunt u vuy utc comporti aru ue lular UNITICI 8.18 The Jones Company normally produces 150,000 units of X per year. Due to an economic downturn, the company has some idle capacity. Product X sells for P15 per unit, The firm's production, marketing, and administration costs at its normal capacity are: wferential Cost Analysis Car & Ritter Direct material Direct labor 259 Tariable overhead Fixed overhead (P45 a (P450,000/150,000 units) viable marketing costs Per Unit P1.00 2.00 nd administrative cost Fixed marke P210,000/150,000 units) 1.50 3.00 1.05 Total firm's operating income before income taxes if the firm py 1.40 P2.95 Required: a. Comp 110,000 b. For 2018 Compute the firm' 10,000 units in 2017 2018, the firm exp de newspaper, the fi I the firm produced and sold There are no ma + The company wishes to s as it sold in 2017. However, in a Selling X to a state government. e company is awarded the contract. T cost plus Po r. the firm noticed an invitation to bid on selling X to as e number of units as it sold in 2017. How marketing costs associated with the order if the company repare a bid for 40,000 units at its full manura 25 per unit. How much should it bid? If the company is suc Cat would be its effect on operating income? he company is awarded the contract on January 2, 2018, and order from a foreign vendor for 40,000 units at the regular price shipment will require the firm to incur its normal marketing com company is successful at getting c. Assur the contract, what w Assume that the cor receives an order The foreign shipme overnment contract within 10 days with wract on January 2, 2018, and in addition it also at the regular price of P15 per unit. pay at 112 tim overhead will The company has the capa lays without any penalty). If the firm accepts the government contra ces, the firm can reject the contract 16 times the straight time rate will be paid on the 40,000 units. In addit d will increase by P60,000 and variable overhead will behave in its normal pattern. u on the 40,000 units. In addition, fixed ny has the capacity to produce both orders. Decide the following 1 Should the firm accept the foreign offer? Show the effect on operating cos accepting the order. Assuming the foreign order is accepted, should the firm accept the govem order? Show the effect on operating income of accepting the governmen loud hulgo lau firm at p95.000 per year. She is