A telephone company have a production capacity of 500,000 units per month. At its present capacity of 3 50,000 units per month, the company have monthly income of ₱350,000,000. The company has a fixed cost of ₱100,000,000 per month and a variable cost of ₱200 per unit. a. What is the present profit or loss in millions of pesos? b. What is the break-even quantity? c. If the production is increased to 80% of its capacity, what is the profit or loss in millions of pesos?
A telephone company have a production capacity of 500,000 units per month. At its present capacity of 3 50,000 units per month, the company have monthly income of ₱350,000,000. The company has a fixed cost of ₱100,000,000 per month and a variable cost of ₱200 per unit. a. What is the present profit or loss in millions of pesos? b. What is the break-even quantity? c. If the production is increased to 80% of its capacity, what is the profit or loss in millions of pesos?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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A telephone company have a production capacity of 500,000 units per month. At its present capacity of 3 50,000 units per month, the company have monthly income of ₱350,000,000. The company has a fixed cost of ₱100,000,000 per month and a variable cost of ₱200 per unit.
a. What is the present profit or loss in millions of pesos?
b. What is the break-even quantity?
c. If the production is increased to 80% of its capacity, what is the profit or loss in millions of pesos?
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