Use this information to answer items 1 to 4 Him Corporation produces a single product. The following cost structure applied to its first year of operations: Variable costs: SGEA P2 per unit Production P4 per unit Fixed costs [total cost incurred for the year}: EEEA P14,DGD Production P20,DGD 1. Refer to Him Corporation. Assume for this question only that during the current year Him Corporation manufactured 5,00 units and sold 3,800. There was no beginning or ending work-in-process inventory. How much larger or smaller would Him Corporation's income be if it uses absorption rather than variable costing? 2. Refer to Him Corporation. Assume for this question only that Him Corporation manufactured and sold 5,DDU units in the current year. At this level of activity it had an income of P3D,DUG using variable costing. What was the sales price per unit? 3. Refer to Him Corporation. Assume for this question only that Him Corporation produced 5,UDG units and sold 4,500 units in the current year. If Him uses absorption costing, it would deduct period costs of 4. Refer to Him Corporation. Assume for this question only that Him Corporation manufactured 5,000 units and sold 4,00 in the current year. If Him employs a costing system based on variable costs, the company would end the current year with a finished goods inventory of Use this information to answer items 5 to 3 Three new companies (R, S, and T} began operations on January 1 of the current year. Consider the following operating costs that were incurred by these companies during the complete calendar year: Com an R. Company B Company T Production in units 10,000 10,000 10,000 Sales price per unit P10 P10 P10 Fixed production costs P10,000 P20,000 P30,000 3::ng ProduCtmn 1:30 , 000 P20 , am pm , um Variable 3:33.32. pm , 000 920 , 000 930 , 000 Fixed SGEA P30,000 P20,000 Pl0,000 5. Refer to Companies R, S, and T. Based on sales of 7,000 units, which company will report the greater income before income taxes if absorption costing is used? 6. Refer to Companies R, S, and T. Based on sales of 7,000 units, which company will report the greater income before income taxes if variable costing is used? 7. Refer to Companies R, S, and T. Based on sales of 10,000 units, which company will report the greater income before income taxes if variable costing is used? 3. A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. To realize a profit of P20,000, the firm must have a sales price per unit of at least