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What amount be considered for evaluation of common company

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Reference no: EM133150645

Question - Common Company had the following information from their financial reports:

Sales (P400 per unit) P3,200,000.00

Manufacturing Costs

Direct Materials 800,000.00

Direct Labor 480,000.00

Variable Overhead 320,000.00

Fixed Overhead 500,000.00

Selling and Administrative Costs

Variable (based on unit sales) 320,000.00

Fixed (Allocated) 300,000.00

Required - Fixed Overhead pertains to salaries of departmental personnel and other controllable costs. What amount should be considered for evaluation of Common company, given that it is delegated as a Profit Center?

Reference no: EM133150645

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