You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a product is Php 20.00. The sale price for each product will be Php 60.00. If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money? 1. Complete the Table below 2. Compute for the Break Even point 3. Make a Line Graph to show break even 4. Explain the scenario VOLUME 6,000 6,500 7,000 8,000 8,500 9,000 9,500 11,000 12,000 14,000 15,000 16000 18000 18500 20000 SALES Variable Cost Fixed Cost Total Cost PROFIT

You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a product is Php 20.00. The sale price for each product will be Php 60.00. If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money? 1. Complete the Table below 2. Compute for the Break Even point 3. Make a Line Graph to show break even 4. Explain the scenario VOLUME 6,000 6,500 7,000 8,000 8,500 9,000 9,500 11,000 12,000 14,000 15,000 16000 18000 18500 20000 SALES Variable Cost Fixed Cost Total Cost PROFIT

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

SAMPLE PROBLEM:
You are an investor and planning to enter the automobile industry as a supplier. The potential number of forthcoming projects, you
forecasted that within two years, your fixed cost for producing car accessories is Php 400,000. The variable unit cost for making a
product is Php 20.00. The sale price for each product will be Php 60.00.
If you charge Php 60.00 for each panel, how many panels you need to sell in total, in order to start making money?
1. Complete the Table below
2. Compute for the Break Even point
3. Make a Line Graph to show break even
4. Explain the scenario
VOLUME
6,000
6,500
7,000
8,000
8,500
9,000
9,500
11,000
12,000
14,000
15,000
16000
18000
18500
20000
SALES
Variable Cost
Fixed Cost
Total Cost
PROFIT

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