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. 240,000 4. 950,000 expenditure 0 for next year Seting price Yor advertising: rice per nt “7, vert “Yea vows 4L8") 199,000 Fred costs ea000 None se e\ramere * nace? 300,000 ‘ Cale ek nse on a marta study n Dacembar of ts year oy ‘that it could increase the unit selling price by 15% and increase the uni sales Volume "by 10% if (100,000 were spent on Advertising. “Assuming that Wilson incorporates these changes In ls forecast, what should be the ‘operating income from product O? 2. P175,000 205,000 b. 190/000 ‘&. p365,000 412. Pitt Company Is considering proposal to replace fxisting "machinery. used. for" the manufacture of product A'"The new machines are soos Increased annuat fied costs of P120,000._ Variable Costs should decrease by 20%, however, because of in direct labor hours and mace efficient sage of direct materials. Before this change was | oe va” _ 2,000,000 Variable costs S04 ry 70% of sales Fined costs % 7eq00, 000 Set, ewe ‘Assuming that Pitt implemiéfit the above proposal by January 4, what would be the increase in budgeted aperating profit for product A forte year? oa ‘e360 000 . '7286,000 4. 480,000, 13, Twin Co produces and sells two products. Product A Sells for PS and has variable expenses of 3. Sells for P18 and has variable expenses of 120,000 units of A and ‘are P100,000 per Variable: P4 per unit ined 260,00 Satnng and administrative costs: Variable: 1 per unit Fixed: P32,000 ‘margin that the company would disclose onan ing ‘ncaa’ setement = o"es7 500. %, pe0,500, B, p47. 000. 4. '0376,000. company manufactures a single product us 15. Gea Company a eon cons are PE standard cost. on costs are P125,000, Cleo uses Sr set ef 13,900 uit tae ts Wie year with units. "he ot 7 *, ‘absorption costing le ‘2. P115,000 °e, P242,000 Ycsions BL 132.000 \yormern 259,000 mmmimem [STANDARD COST & VARIANCE ANALYSIS Ttueky Corporation's purchasing manager obtained 2 Specal price on an aluminum alloy from a new resulting in a direct-material price variance arenes ie tatty not ler, Wa eieunmoudt ie best used in ging hs eae Sore ataliae eee ee CERES ame : 2. fuel rend pnt 280,00, sn 2 i ar arta eeamemeee ‘Spending war P6000" onfavorabie ed ma Overnest spoles "9208 000, ©. v202 B, P208,000-