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Suggested Time Spent: 15 minutes The total market for a certain type of product made by ABC Company is estimated to be 150,000 units. ABC

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Suggested Time Spent: 15 minutes The total market for a certain type of product made by ABC Company is estimated to be 150,000 units. ABC 's marketing department estimates that its share of the product's market will depend on its selling price in the following manner. ABC estimates its fixed cost for production at Php 100,000 and its variable cost of production at Php 2.50/unit. Required: a) What are the break-even points at the different selling prices? b) How much profit can the company expect to make at the estimated sales levels for each of the selling prices? c) Which of the selling prices should the company select and why? d) What's the range of selling prices for which the profit is not that sensitive to selling price, i.e., within 5% from the profit for the selling price chosen in letter (c)

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