Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of production is P4,000, and the variable cost per pound of cheese is P0.21. The cheese sells for P0.75 per pound; however, the dairy is considering raising the price to PO.95 per pound. The dairy currently produces and sells 9,000 pounds of cheese per month, but if it raises its price per pound, sales will decrease to 5,700 pounds per month. Should the dairy raise the price?
Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of production is P4,000, and the variable cost per pound of cheese is P0.21. The cheese sells for P0.75 per pound; however, the dairy is considering raising the price to PO.95 per pound. The dairy currently produces and sells 9,000 pounds of cheese per month, but if it raises its price per pound, sales will decrease to 5,700 pounds per month. Should the dairy raise the price?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 9EA: Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a...
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