Solution-Compute the number of guitar sales

Compute the number of guitar sales

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Reference no: EM132800005

Question - J&J Music Builders is a new business in the industry. Currently, they are producing and selling bamboo organs and flutes. They are planning to add guitar to their instruments. Based on the study conducted, the following are cost data related to the creation of conventional and electric guitars:

	Conventional	Electric
Direct Materials	P1,200 / unit	P1,800 per unit
Direct Labor	P1,800 / unit	P450 / unit
Fixed Factroy Overhead	16,000	47,970
Variable Factory Overhead	240 / unit	720 / unit
Variable Selling Expense	80 / unit	120 / unit

Required - Compute the number of guitar sales which would give J&J the same operating income when they choose either of the alternative presented above?

Reference no: EM132800005

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Compute the number of guitar sales

Reference no: EM132800005

Reference no: EM132800005

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