Honesty Company produces a single product. During the year, Honesty Company's net operating income under...
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Honesty Company produces a single product. During the year, Honesty Company's net operating income under absorption costing was P8,500 higher than under variable costing. The company sold 25,000 units during the year, and its variable costs were P5 per unit, of which P1 was a variable selling expense. If production cost was P9 per unit under absorption costing, then how many units did the company produce during the year?
a. 27,125
b. 22,875
c. 26,700
d. 23,300
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