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Management Review 7
Management Review 7
Jaeger Inc. has some material that originally cost P19,500. The material has a scrap
value of P13,300 as is, but if reworked at a cost of P2,100, it could be sold for P14,000.
What would be the incremental effect on the company's overall profit of reworking and
selling the material rather than selling it as is as scrap? Indicate the change i.e. increase
(or decrease, indicate the ”-“ sign) -1400
Question 102 pts
Data concerning NikNik Corporation’s activity for the 6 months appear below:
Machine Electrical Cost Hours
January ₱3,120 4,000
February 4,460 6,000
March 3,500 4,800
April 5,040 5,800
May 2,900 3,600
June 3,200 4,200
Using the high-low method of analysis, estimate the variable electrical cost per machine
hour (nearest centavo-two decimal places). 0.65
Question 112 pts
Shipping expense is P9,000 for 8,000 pounds shipped and P11,250 for 11,000 pounds
shipped. Assuming that this activity is within the relevant range, if the company ships
9,000 pounds, its expected shipping expense is closest to (nearest peso): 9750