A Tasty Food INC , considering an ads for their product which will mean additional

P20,000to fixed costs . Their product now selling at P 18.50 has a variable cost of P 6.00

per unit. If the current fixed cost ar P 105,000.00

a. How many units must be sold to justify the advertisement?

b. Give the new break even point.

Suppose the total cost of manufacturing x units of a certain commodity is

C( x) = 1/6 x³ + 2x + 5 pesos

a. Express the average cost per unit as a function of the number units sold

( hint: average cost is the total cost divided the number of units produced)

b. What is the total cost of producing 110 units?

c. What is the average cost of producing 150 units? The management of the company feels that the demand for its product will rise

substantially in the following years according to the equation Q = 5 (1.1) t

Where Q is the quantity demanded in thousand units t years from now. This will be the

joint results of increasing advertisements and the growing number of non- users who

are shifting to their product.

a. At what rate does management feels its sales will grow?

b. What would be the estimated demand 3 years from now?

c. In how many years would the demand reach 8000 units?