ENGINEERING ECONOMICS

6. A cellphone company has a fixed cost of P15,000,000 per month and a variable cost of P200 per month per subscriber. The company charges P399. 5 per month to its cellphone customers. Calculate the following: a) The break-even point for this company b) The company currently has 730,000 subscribers and proposes to raise its monthly fees to P499. 5 to cover add-on features such as text messaging, song down1oad, game playing, and video watching. What is the new break-even point if the variable cost increases to P250 per customer per month? c) If 100,000 subscribers wil1 drop their service because the month1y fee increase in problem b, what is the profit per month of the company