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ABC Corporation produces 10,000 units of product x per month. The average variable cost is Php 50.00 per unit. In its operations, it incurs the

ABC Corporation produces 10,000 units of product x per month. The average variable cost is Php 50.00 per unit. In its operations, it incurs the following monthly expenses:

Rental- Php 50,000.00

Supplies-Php 20,000.00

Labor costs- Minimum wage (Php 404.00) for 10 people (6days work/week)

Transportation cost-Php 50,000.00

Depreciation expense- Php 90,000.00

Salaries-Php 120,000.00

Miscellaneous Expenses-Php 45,000.00

Mark up on cost -200%

Corporate tax of 30%

1.How much is the total fixed cost?

2.How much is the total variable cost?

3.How much is the total cost?

4.How much is the sales?

5.How much is the profit before tax?

6.How much is the profit after tax?

7.How much is the net cash flow?

8.Based on the net cash flow, compute the Net Present value (NPV) if the risk-adjusted discount rate is 15%, the initial investment is Php 10,000,000.00, and the expected recovery of capital is 5 years.

9.How much is the internal rate of return if the yearly payment is Php 3,000,000.00 plus Php 2,000,000.00 on the fifth year at 5% interest ?

10.How much is the profitability index if the discount rate is 7% and the cash flows are as follow: Y0isPhp -5,000,000.00; Y1 is Php 1,500,000.00; Y2 is Php 3,000,000.00; Y3 is Php 2,780,000.00; Y4 is Php 4,000,000.00; Y5 is Php 3,800,000.00; Y6 is Php 5,500,000.00 and Y7 is Php 2,500,000.00?

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