XYZ Corporation has the following standard costs and production data in 2021:

Unit sales price P150

Unit variable cost of production 100

Unit fixed overhead 25

Unit variable expense 15

Unit fixed expenses 10

Beginning Inventory 5,000 units

Normal capacity 25,000 units

In profit or loss calculation, it is assumed that normal capacity equals actual production.

CASE A: Production (25,000 units); Sales(30,000 units)

1.a Compute the profit or loss using absorption costing and variable costing

1.b Compute the difference in profit using the beginning and inventory units perspective

1.c Compute the difference in profit using the beginning and inventory amounts perspective