Direction: Solve the problem involving buying and selling of products. Show all your solutions. Problem: Lisa is passionate in baking. She plans to bake cookies at home and to post it online for orders. She plans to sell it by 10 pieces in a pack. She estimates that the materials and ingredients needed for 50 packs of cookies will cost her P2,500.00. She plans to sell each pack of cookies at 50% mark-up based on cost. Since her business will be home-based, she promised to give her mom P 3,000.00 as her share in water, electricity and internet bills every month. Determine the break-even point.
Direction: Solve the problem involving buying and selling of products. Show all your solutions. Problem: Lisa is passionate in baking. She plans to bake cookies at home and to post it online for orders. She plans to sell it by 10 pieces in a pack. She estimates that the materials and ingredients needed for 50 packs of cookies will cost her P2,500.00. She plans to sell each pack of cookies at 50% mark-up based on cost. Since her business will be home-based, she promised to give her mom P 3,000.00 as her share in water, electricity and internet bills every month. Determine the break-even point.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direction: Solve the problem involving buying and selling of products. Show all your
solutions.
Problem: Lisa is passionate in baking. She plans to bake cookies at home and to
post it online for orders. She plans to sell it by 10 pieces in a pack. She
estimates that the materials and ingredients needed for 50 packs of cookies
will cost her P2,500.00. She plans to sell each pack of cookies at 50%
mark-up based on cost. Since her business will be home-based, she
promised to give her mom P 3,000.00 as her share in water, electricity and
internet bills every month. Determine the break-even point.
Solution:
1. Identify and/or compute for
the total fixed cost.
2. Identify and/or compute for
the variable cost per unit.
3. Identify the selling price per
unit.
4. Substitute the values in Steps
1 to 3 to the given formula
and solve for the break-even
point.
5. Check your answer.
6. Make your conclusion.
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