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3. As Christmas is approaching, Pat needs to increase capacity for her small business selling personalized notebooks. She decides to rent additional space for Php10,000
3. As Christmas is approaching, Pat needs to increase capacity for her small business selling personalized notebooks. She decides to rent additional space for Php10,000 per month, and she hired another helper in addition to her current assistant at the same salary of Php15,000 per month. She is also boosting her online presence and budgets Php10,000 for this purpose. In addition, she bought another labeling machine to increase capacity with a monthly depreciation cost of P5,000. Each notebook costs Php50, while a roll of foil to put a name on each notebook costs P100 which should be enough to label 25 notebooks. In addition, she wants to put a ribbon on each notebook, and found a supplier that sells a 10m roll for Php50. Each notebook will need about 20cm of ribbon. a. If she sells each notebook for Php125, how many should she sell a month to breakeven? (5 points) b. (Independent of a) If Pat receives an order for 2,000 notebooks which will force her to stop taking any additional orders for the month, how much should she price each notebook if she wants to earn a profit of Php100,000? (5 points) c. (Independent of a and b) How much will her profit be if she sells 2,500 notebooks at the price of Php150 each? (5 points)
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