NON-LINEAR PROFIT ANALYSIS In non-linear function it is a capital mistake to assume that the increase in production would mean the increase in profit. It would be more realistic for the volume to vary as price increased or decreased due to external factors. Problem A businessman buys a certain commodity at P 23.00 per unit and sells them at P 39.00 per unit. His fixed cost is P 3,500. Due to stiff competition, the sale of the product began to decline. The selling price decreased by 4 % of the units sold. The variable and fixed cost remains constant. a. Represent the new selling price. b. Determine the TR, TC and profit function. c. Find the BEP quantity revenue. d. What is the profit at a sale volume of 120 units