Transcribed Image Text: J&J Music Builders is a new business in the industry. Currently, they are producing and selling bamboo organs and flutes. They are planning to add guitar to

Transcribed Image Text: J&J Music Builders is a new business in the industry. Currently, they are producing and selling bamboo organs and flutes. They
are planning to add guitar to their instruments. Based on the study conducted, the following are cost data related to the creation of
conventional and electric guitars:
Conventional
Electric
P1,800/unit
Direct materials
P1,200/unit
1,800/unit
16,000
Variable factory overhead 240/unit
Direct labor
450/unit
Fixed factory overhead
47,970
720/unit
Variable selling expense
120/unit
80/unit
Compute for the number of guitar sales which would give J&J the same operating income when they choose either of the
alternative presented above.

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