Elephant Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per unit. Elephant's monthly fixed expense is P3,000,000. Let W be the number of units manufactured a. Construct the total cost function b. Construct the profit function c. Compute the contribution margin ratio.
Elephant Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per unit. Elephant's monthly fixed expense is P3,000,000. Let W be the number of units manufactured a. Construct the total cost function b. Construct the profit function c. Compute the contribution margin ratio.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Elephant Company sells bags with a selling price of P10,000 per bag and a
variable cost of P4,000 per unit. Elephant's monthly fixed expense is P3,000,000.
Let W be the number of units manufactured
a. Construct the total cost function
b. Construct the profit function
c. Compute the contribution margin ratio.
d. Compute total revenues needed to break even.
e. Determine the breakeven point in units sold and sales in pesos.
f. Compute required sales needed to achieve a target net income of P1,500,000
in units sold and sales in pesos
g. Determine margin of safety if current sales is P8,750,000
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