1. A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit. The total fixed cost is P20,000.

Determine the following and provide solution:

a. The break-even quantity and revenue

b. The profit (or loss) at a sales volume of P15,000 units

c. How can profit be generated if there is a loss in (b)

d. Up to how much should the selling price per unit be increased or decreased to break-even at 15,000, assuming that FC and UVC remain constant.

2. A small-scale manufacturer can sell q number of units of each product produced per week at a price of (18 - 0.02q) pesos. It costs P8 to make each unit of the product. The fixed cost associated with producing and selling the product weekly is P450.

Determine [and provide solution]:

a. The TR, TC and profit Function.

b. Production level to break-even.

c. Production level to maximize profit.

d. Maximum profit at this level. e. Interpret the meaning of the two break-even points