Reference no: EM133182534

Questions -

Q1. Net income under variable costing is P 30,000. Data shows: the total manufacturing cost per unit is P 20; total variable cost per unit is P 15 per unit and variable period cost is P 3 per unit. Beginning and ending inventories are 1,000 units and 1,500 units, respectively. What is the income under absorption costing?

a. 34,000

b. 32,500

c. 27,500

d. 28,000

e. None of the above

Q2. Sales increased from Year 1 (with sales of 800,000) to Year 2 (with sales of 900,000); The DOL (Degree of Operating Leverage) in Year 1 is 5.0 and EBIT in Year 2 is 81,250. What is the fixed cost?

a. 100,000

b. 200,000

c. 325,000

d. Cannot be determined