Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Reading, Writing, And Proving A Closer Look At Mathematics

Authors: Ulrich Daepp, Pamela Gorkin

2nd Edition

1441994793, 9781441994790

More Books

Students also viewed these Mathematics questions

Question

What type of tables does Excel use to create data visualization?

Answered: 1 week ago

Question

Explain the meaning of cost management. lo2

Answered: 1 week ago