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12 ACTIVITY 1.docx - 12 ACTIVITY 1 1. MILTON COMPANY Milton...

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12 ACTIVITY 11.MILTON COMPANYMilton company should accept the order because they will have anincremental income of P3,500, given the fact that the relevant cost per unitis P17.50, but the selling price is P18.00.2.FUJI COMPANYFuji company should buy part because the cost to buy (P640,000) is lower
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Term
Spring
Professor
Dr. Montag-Smit
Tags
Contribution Margin, milton company, incremental income of P3 500

Unformatted text preview: than the cost to make (P652,000). 3. TITAN COMPANY Product C should be eliminated because the contribution margin (P45,000) is less than the fixed costs to be avoided (P49,000). It turns out that the direct margin is negative, so the product should be eliminated....
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