Mr. Singh Hot is using special chemicals for ply bathroom tissue to differentiate it from other tissue in the market. Initially he has 15 machines that cost P1,500,o00, and 12 workers with a salary of P23,000 each. The selling price of Mr. Singh Hot is P25.00 and he is able to produce an output of 100,000 tissue in 2012. In 2013 he employed 10 more workers with the same salary and the output increased by 20,000 pieces. In 2014, 15 more workers were employed with the same salary and the output increased to150,000 pieces..

Mr. Singh Hot is using special chemicals for ply bathroom tissue to differentiate it from other tissue in the market. Initially he has 15 machines that cost P1,500,o00, and 12 workers with a salary of P23,000 each. The selling price of Mr. Singh Hot is P25.00 and he is able to produce an output of 100,000 tissue in 2012. In 2013 he employed 10 more workers with the same salary and the output increased by 20,000 pieces. In 2014, 15 more workers were employed with the same salary and the output increased to150,000 pieces..

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

COST AND REVENUE ANALYSIS
Mr. Singh Hot is using special chemicals for ply
bathroom tissue to differentiate it from other tissue
in the market. Initially he has 15 machines that
cost P1,500,000, and 12 workers with a salary of
P23,000 each. The selling price of Mr. Singh Hot is
P25.00 and he is able to produce an output of
100,000 tissue in 2012. In 2013 he employed 10
more workers with the same salary and the output
increased by 20,000 pieces. In 2014, 15 more
workers were employed with the same salary and
the output increased to150,000 pieces..

Compute Mr. Singh Hot costs and revenues;
1. What is the maximum profit?
2. What is the given level of output that yields the
highest profit?
P
TFC TVC TC
TR MR MC P/L ATC

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