13. General Electric Company which manufactures electric motor has a capacity of producing 150 motors a month. The variable costs are P4,000.00 per month, the average selling price of the motor is P750.00 per motor. Fixed costs of the company amount to P78,000.00 per month which includes all taxes. The company has 12,000 shares of stock at P150.00 par value whose annual dividends are 15%. What is the profit if production is at 50% of capacity?

13. General Electric Company which manufactures electric motor has a capacity of producing 150 motors a month. The variable costs are P4,000.00 per month, the average selling price of the motor is P750.00 per motor. Fixed costs of the company amount to P78,000.00 per month which includes all taxes. The company has 12,000 shares of stock at P150.00 par value whose annual dividends are 15%. What is the profit if production is at 50% of capacity?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 8PROB

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