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ABC Company has 12,000 units capacity and projected to produce and sell 10,000 units at P60 per unit for Year 2020. Standard budgeted cost per unit: variable cost P22.50 and fixed cost P14.50. Sometime 3rd quarter of 2020 there is a special order for 500 units for P45 selling price.
problem 1: Should the company accept the special order, and why? What could be the implications?
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Prepare a flexible budget for output levels of 3,500 locks, 5,000 locks, 7,000 locks and 12,000 locks for the month ended December 23, 2015.
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The company's CEO just returned from a seminar on management accounting and some new tools that can be used to assist in management of the business. One of the new tools she learned about is referred to ascontribution format income statements.
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