Nos. 14, 15, and 16 are based on the following data: The Yellow Co, has...
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Nos. 14, 15, and 16 are based on the following data: The Yellow Co, has the capacity to manufacture 20,000 units per month. However, present plans call for monthly production and sales of 15,000 units of P21,00 each. Costs per unit are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable marketing expenses Fixed administrative expenses Total P7.00 4.20 1.05 2.10 0.35 1.40 P16.10 14. Assume that Yellow Co. accepted a special order of 5,000 units at P15.00 per unit, the decrease or increase in contribution margin shall amount to a. P5,500 decrease. c. P12,000 increase. e. None of these. b. P12,000 decrease. d. P13,750 increase. 15. The unit cost figure the company would use in costing inventory using direct costing is a. P12.25. c. P14.70. e. None of these, b. P12.60. d. P16.10. 16. Assuming that the regular sales price of the company is reduced to P19.00 resulting in a 10% increase in sales volume, the effect in the monthly contribution margin will be a. P20,400 decrease. c. P30,000 increase. e. None of these b. P20,400 increase. d. P33,000 increase
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