Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case? a. P = 120x – 50x – 70,000 b. C = 50x + 70,000 c. R = 120x d. no answer

Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case? a. P = 120x – 50x – 70,000 b. C = 50x + 70,000 c. R = 120x d. no answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...

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Question

Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case?
a. P = 120x – 50x – 70,000
b. C = 50x + 70,000
c. R = 120x

d. no answer

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