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The following information was extracted from the first year absorption-based accounting records of Enigma Corporation
Total fixed costs incurred P100,000
Total variable costs incurred 50,000
Total period costs incurred 70,000
Total variable period costs incurred 30,000
Units produced 20,000
Units sold 12,000
Unit sales price P12
Question 1: If Enigma Corporation had used variable costing in its first year of operations, how much income (loss) before income taxes would it have reported?
a. (P6,000)
b. P54,000
c. P26,000
d. P2,000
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