Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000 G Increase by P 110.000 2. Be unaffected 5. If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 Increase by P110,000 Be unaffected ai b. &

Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000 G Increase by P 110.000 2. Be unaffected 5. If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 Increase by P110,000 Be unaffected ai b. &

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5BE: Contribution margin by segment The following information is for LaPlanche Industries Inc.: Determine...

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Contribution margin by segment The following information is for LaPlanche Industries Inc.: Determine the contribution margin for (A) Product YY and (B) West Region.
Refer to Exercise 7.25 and allocate the joint costs using the sales-value-at-split-off method.
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