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

Increase by P 90,000

Increase by P 100,000 

Increase by P 110,000 

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 P 110,000 

 Be unaffected a. b. с a.

Answer rating: 100% (QA)

Answer 4 Correct option is A Increases by P90000 Sales100000 1 100000 Less selling cost 100... View the full answer