A certain company sells Its product at (45 - 0.08x) pesos per unit. Varlable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.

A certain company sells Its product at (45 - 0.08x) pesos per unit. Varlable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit
is P 25 while fixed cost is P 1,200.
a. Find the break-even quantity and revenue
b. Find the maximum point
c. Find the profit at a sale of 120 units.

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