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Problem 1: Gumamela Company manufactures a single product. Unit variable production costs are P20 and fixed production costs are P150,000. 1.Gumamela uses a normal activity of 10,000 units. Gumamela began the year with no inventory, produced 12,000, and sold 7,500 units. What is the unit production cost under absorption costing?
Select one:
a. P32.50b. P20.00c. P40.00d. P35.00
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