plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is ₱40 per unit, and the product sells for ₱90 per unit. a. What is the plant’s breakeven point in terms of quantity per year? b.If the selling price is increased to ₱100 per unit, how many units must be sold to achieve a profit of 3M per year? c.If 80% of the output capacity per year are sold, what would be the annual profit? If 100%? d.If 100% of the output capacity per year are sold, what would be the annual profit?
plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is ₱40 per unit, and the product sells for ₱90 per unit. a. What is the plant’s breakeven point in terms of quantity per year? b.If the selling price is increased to ₱100 per unit, how many units must be sold to achieve a profit of 3M per year? c.If 80% of the output capacity per year are sold, what would be the annual profit? If 100%? d.If 100% of the output capacity per year are sold, what would be the annual profit?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is ₱40 per unit, and the product sells for ₱90 per unit.
a. What is the plant’s breakeven point in terms of quantity per year?
b.If the selling price is increased to ₱100 per unit, how many units must be sold to achieve a profit of 3M per year?
c.If 80% of the output capacity per year are sold, what would be the annual profit? If 100%?
d.If 100% of the output capacity per year are sold, what would be the annual profit?
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