Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much. An ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs Php 500 in the market while the producer faces variable costs of Php 150 per tub.a. What is the economic breakeven level of production?b. Calculate the ice cream producer's monthly profits at full capacity.c. What would happen to the monthly profits if another ice cream producer entered the market, driving the price of ice cream tubs down to Php 350 per unit?

When sales income and costs attributed to a certain time are equal, a corporation experiences a…

ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs Php 500 in the market while the producer faces variable costs of Php 150 per tub. What is the economic breakeven level of production? Calculate the ice cream producer's monthly profits at full capacity.

ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs Php 500 in the market while the producer faces variable costs of Php 150 per tub. What is the economic breakeven level of production? Calculate the ice cream producer's monthly profits at full capacity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.

An ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs Php 500 in the market while the producer faces variable costs of Php 150 per tub.
a. What is the economic breakeven level of production?
b. Calculate the ice cream producer's monthly profits at full capacity.
c. What would happen to the monthly profits if another ice cream producer entered the market, driving the price of ice cream tubs down to Php 350 per unit?

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