Problem 1

The following data were taken from the first-year absorption based accounting records of X Corp.:

Total fixed costs incurred P 100,000 Total variable costs incurred P 50,000 Total period costs incurred P 70,000 Total variable period costs P 30,000 incurred Units produced 20,000 Units sold 12,000 Unit sales price P 12.00 If X Corp had used variable costing in first year of operations, how much income (loss) before tax would it have reported