Answer for this problem.

Maximum productive capacity 24,000 units per year

Normal capacity 20,000 units

Standard variable manufacturing costs per unit 10

Fixed factory overhead 40,000

Variable selling expenses per unit 4

Fixed selling expenses 30,000

Unit sales price 20

2019 operating results

Sales 19,000 units

Production 19,200 units

Net unfavorable variance standard variable manufacturing costs per unit 10, 000

REQUIRE

1. Income under both costing methods

2. Break even point

3. Margin of safety for 2013

4. Required sales to earn after tax profit of 140,000 (tax rate is 30%)

5. Required sales in peso to earn profit of 10% of sales.