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Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total profit from selling the decors, how would you present it? Let P indicate the total profit.  a. P = 2,000x – (340,000 + 700x) b. P = 340,000 – 700x c. P = 340,000 + 700x d. none of the above

Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total profit from selling the decors, how would you present it? Let P indicate the total profit.  a. P = 2,000x – (340,000 + 700x) b. P = 340,000 – 700x c. P = 340,000 + 700x d. none of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Polish Company is a leading local maker of Christmas decors. This coming Christmas season, the company plans to introduce a new model of decor set which will give the company a sizable amount of profit. For this project, the fixed cost during the production season will amount to P340,000; the variable cost per unit is P700. The selling price will be pegged at P2,000. If you were to develop a mathematical model for the total profit from selling the decors, how would you present it? Let P indicate the total profit. 
a. P = 2,000x – (340,000 + 700x)
b. P = 340,000 – 700x
c. P = 340,000 + 700x

d. none of the above

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