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25. Refer back to the original data. How would Novus' variable costing net operating income been affected in its first year if 4,500 parachutes were produced instead of 4,000 and Novus still sold 4,000 parachutes? a. net operating income would not have been affected O b. net operating income would have been P38,000 higher O c. net operating income would have been P57,000 higher

25. Refer back to the original data. How would Novus' variable costing net operating income been affected in its first year if 4,500 parachutes were produced instead of 4,000 and Novus still sold 4,000 parachutes? a. net operating income would not have been affected O b. net operating income would have been P38,000 higher O c. net operating income would have been P57,000 higher

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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use 23 as reference for 25

25. Refer back to the original data. How would Novus' variable costing net operating income been affected in its first year if 4,500 parachutes were produced instead of 4,000 and Novus still sold 4,000 parachutes? a. net operating income would not have been affected b. net operating income would have been P38,000 higher c. net operating income would have been P57,000 higher d. net operating income would have been P75,000 lower
Transcribed Image Text:25. Refer back to the original data. How would Novus' variable costing net operating income been affected in its first year if 4,500 parachutes were produced instead of 4,000 and Novus still sold 4,000 parachutes? a. net operating income would not have been affected b. net operating income would have been P38,000 higher c. net operating income would have been P57,000 higher d. net operating income would have been P75,000 lower
Novus' cost structure: (See image) In its first year of operations, Novus produced and sold 4,000 parachutes. The parachutes sold for P310 each. If Novus would have sold only 3,800 parachutes in its first year, what total amount of cost would have been assigned to the 200 parachutes in finished goods inventory under the variable costing method? * Variable cost per Total fixed cost for the year P342,000 P171,000 parachute Manufacturing cost. Selling and administrative... P160 P10 a. P28,000 b. P32,000 с. Р34,000 d. P49,100
Transcribed Image Text:Novus' cost structure: (See image) In its first year of operations, Novus produced and sold 4,000 parachutes. The parachutes sold for P310 each. If Novus would have sold only 3,800 parachutes in its first year, what total amount of cost would have been assigned to the 200 parachutes in finished goods inventory under the variable costing method? * Variable cost per Total fixed cost for the year P342,000 P171,000 parachute Manufacturing cost. Selling and administrative... P160 P10 a. P28,000 b. P32,000 с. Р34,000 d. P49,100
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