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Question - ABC Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:
Direct materials P150,000
Direct labor 240,000
Inspecting products 60,000
Providing power 30,000
Providing supervision 40,000
Setting up equipment 60,000
Moving materials 20,000
Total P600,000
If the component is not produced by ABC, inspection of products and provision of power costs will only be 10% of the production costs; moving materials costs and setting up equipment costs will only be 50% of the production costs; and supervision costs will amount to only 40% of the production amount. An outside supplier has offered to sell the component for P25.50.
What is the effect on income if ABC Industries purchases the component from the outside supplier?
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aziz industries has sales of 100000 and accounts receivable of 11500 and it gives its customers 30 days to pay. the
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