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How much larger or smaller would Simple Corp income

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Reference no: EM132576530

Question - Simple Corp. produces a single product. The following cost structure applied to their first year of operations, 2000:

Variable Costs per Unit Annual Fixed Costs

SG&A P2.00 P14,000

Production 4.00 P20,000

Assume that during 2000 Simple Corp. manufactured 5,000 units and sold 3,800. There was no beginning or ending work-in-process inventory. How much larger or smaller would Simple Corp.s income be if it uses absorption rather than variable costing?

Reference no: EM132576530

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