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Problem 1: 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. Should the company accept the special order, and why? What could be the implications?

Reference no: EM132663397

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