A cafeteria which offers pastries to its customers sells them at P 60 per dozen. In p pastries, it incurs a semi-annual fixed cost of P 2,400 and an average vanable cost of P 3 per piece (1) How many pastries should the cafeteria produce to eam profits? (2) If a customer on hundred dozens of pastries in a year at 10% discount on its price per piece, should the accept the order? Why?
A cafeteria which offers pastries to its customers sells them at P 60 per dozen. In p pastries, it incurs a semi-annual fixed cost of P 2,400 and an average vanable cost of P 3 per piece (1) How many pastries should the cafeteria produce to eam profits? (2) If a customer on hundred dozens of pastries in a year at 10% discount on its price per piece, should the accept the order? Why?
Chapter10: Short-term Decision Making
Section: Chapter Questions
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A cafeteria which offers pastries to its customers sells them at P 60 per dozen. In p pastries, it incurs a semi-annual fixed cost of P 2,400 and an average vanable cost of P 3 per piece
(1) How many pastries should the cafeteria produce to eam profits?
(2) If a customer on hundred dozens of pastries in a year at 10% discount on its price per piece, should the accept the order? Why?
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