Z Corp. incurred the following costs in 2020 (its first year of operations) based on production of 10,000 units:

Direct materialP5 per unit

Direct laborP3 per unit

Variable product costsP2 per unit

Fixed product costs (in total)P100,000

When Z Corp. prepared its 2020 financial statements, its Cost of Goods Sold was listed at P100,000. Based on this information, which of the following statements must be true:

CHOICES:

Z Corp. sold 5,000 units

Z Corp. had a very profitable year

Z Corp. sold all 10,000 units that it produced

From the information given, one cannot tell whether Z Corp.'s financial statements were prepared based on variable or absorption costing