Reference no: EM132753881

Problem 1: Youthful Biscuits manufactures and sells boxed coconut cookies. The biggest market for these cookies are as gifts that college students buy for their business teachers. There are 100 cookies per box. The following income statement shows the result of the first year of operations. This statement was the one included in the company's annual report to the stockholders. Sales (400 boxes at P12.50 a box) P5,000.00 Less: Cost of goods sold (400 boxes at P8 per box) 3,200.00 Gross margin 1,800.00 Less: Selling and administrative expenses 800.00 Net income 1,000.00 Variable selling and administrative expenses are P0.90 per box sold. The company produced 500 boxes during the year. Variable manufacturing costs are P5.25 per box and fixed manufacturing overhead costs total P1,375 for the year. What is the company's direct costing net income?