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Problem 1: During 2020, JAMES Company's income under absorption costing was P 3,600 lower than its income under direct costing. The company sold 10,000 units during the year and its variable costs were P 9 per unit, of which P 1 was variable selling expense. If production cost was P 11 per unit under absorption costing, then how many units did the company produce during the year?
A. 8,200 units
B. 8,800 units
C. 11,200 units
D.11,800 units
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