The costs to produce 25,000 units at 70% capacity are: Direct materials P 46,000 Direct labor 55,000 Factory overhead, all fixed 29,000 Selling expense (35% variable, 65% fixed) 50,000 What unit price would the company have to charge to make P2,250 on a sale of 1,500 additional units that would be shipped out of the normal market area?

The costs to produce 25,000 units at 70% capacity are: Direct materials P 46,000 Direct labor 55,000 Factory overhead, all fixed 29,000 Selling expense (35% variable, 65% fixed) 50,000 What unit price would the company have to charge to make P2,250 on a sale of 1,500 additional units that would be shipped out of the normal market area?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 15E

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