You want to establish your own business and are thinking about releasing a new product. Customers will payP150 for it, according to market research, and your sales team believes they can sell at least 1,000 units everymonth. The equipment you'll need to make the product will require a monthly fixed cost of P400,000 and lease offacility at P500,000. Costs of producing the product are direct labor P20, direct materials P15, shipping P5 andsales commission P10. What is the breakeven point? Will this be a profitable venture? Justify you answer.

Answered: Image /qna-images/answer/e642ea7a-58bf-4737-a7b2-ec498156581b.jpg

Answered: You want to establish your own business…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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