Choose the correct letter of answer Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total cost of producing the decors, how would you present it? Let x indicate the number of units produced. a. TC = 340,000 – 700x b. None of the above c. TC = 2,000x – (340,000 + 700x) d. TC = 340,000 + 700x
Choose the correct letter of answer Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total cost of producing the decors, how would you present it? Let x indicate the number of units produced. a. TC = 340,000 – 700x b. None of the above c. TC = 2,000x – (340,000 + 700x) d. TC = 340,000 + 700x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Choose the correct letter of answer
Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total cost of producing the decors, how would you present it? Let x indicate the number of units produced.
a. TC = 340,000 – 700x
b. None of the above
c. TC = 2,000x – (340,000 + 700x)
d. TC = 340,000 + 700x
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