A company manufacturing calculators has a capacity of producing 200 calculators a month. The variable cost in producing one calculator is P1,000. The selling price of a calculator is P2,500. The fixed cost of the company amounts to P150,000 per month including taxes. The company pays its stockholders a monthly dividend of P12.00 per share on each of the 30,000 shares of common stocks. a. Determine the number of calculators that must be sold each month to break even. b. Determine the sales volume corresponding to the unhealthy point. Let Y be the unhealthy point. (The “unhealthy point" is the sales volume at which the business will be able to pay the dividend per month). c. What is the profit/loss of the company if 150 calculators are sold in a month?
A company manufacturing calculators has a capacity of producing 200 calculators a month. The variable cost in producing one calculator is P1,000. The selling price of a calculator is P2,500. The fixed cost of the company amounts to P150,000 per month including taxes. The company pays its stockholders a monthly dividend of P12.00 per share on each of the 30,000 shares of common stocks. a. Determine the number of calculators that must be sold each month to break even. b. Determine the sales volume corresponding to the unhealthy point. Let Y be the unhealthy point. (The “unhealthy point" is the sales volume at which the business will be able to pay the dividend per month). c. What is the profit/loss of the company if 150 calculators are sold in a month?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. A company manufacturing calculators has a capacity of producing 200 calculators a month.
The variable cost in producing one calculator is P1,000. The selling price of a calculator is
P2,500. The fixed cost of the company amounts to P150,000 per month including taxes. The
company pays its stockholders a monthly dividend of P12.00 per share on each of the 30,000
shares of common stocks.
a. Determine the number of calculators that must be sold each month to break even.
b. Determine the sales volume corresponding to the unhealthy point. Let Y be the
unhealthy point. (The “unhealthy point" is the sales volume at which the business
will be able to pay the dividend per month).
c. What is the profit/loss of the company if 150 calculators are sold in a month?
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