A company manufacturing calculators has a capacity of producing 200 calculators a montl 'he variable cost in producing one calculator is P1,000. The selling price of a calculator is 2,500. The fixed cost of the company amounts to P150,000 per month including taxes. TI ompany pays its stockholders a monthly dividend of P12.00 per share on each of the 30, hares 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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Kindly answer thi question. Thank you

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?
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?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education