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Questions -
Q1. Perla Company has projected cost of goods sold of P4,000,000 including fixed cost of P800,000. Variable costs are expected to be 75% of net sales. What will be the projected net sales?
Q2. A company sells a product for $9.00 which has a variable manufacturing cost of $3.00 per unit. Last year, the company needed to sell 20,000 shirts to break even. Assuming the company is subject to a 40% tax rate and wishes to earn $22,500 profit after tax for the coming year, what sales will be required?
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How is job costing in service organizations different from job costing in manufacturing environments?
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