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What the total monthly further processing costs

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Avengers Inc. produces weekly 33, 750 units of Bruce and 67, 500 units of product Donald for which P1, 800, 000 common variable costs are incurred. These two products can be sold as is or processed further. Bruce can be processed further to Hulk and Donald can be processed further to Thor. Further processing of either product does not delay the production subsequent branches of joint products.

Below are the information on the monthly production:

Selling price per unit

Bruce - P54
Donald - P40.50
Hulk - P60.50
Thor - P49.50

Variable costs due to further processing:

Hulk - P225, 000
Thor - 202, 500

Problem 1: To maximize Avengers' manufacturing contribution margin, the total monthly further processing costs that should be incurred amount to

Reference no: EM132749923

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