What abel gross margin would

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Problem 1: Abel Corp. manufactures a product that yields the by-product, "Yum". The only cost associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1 each. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would:

a. Increase by P90,000

b. Increase by 100,000

c. Increase by 110,000

d. Be unaffected

Reference no: EM132797400

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