Task 1:Five-Year Progressive

Production Plan

Solution of the number of bearings to be

manufactured for 5 years and the recovery cost.

Year 1:

Year 2:

Year 3:

Year 4:

Year 5:

Company RGD opened a new manufacturing plant that fabricates high-quality steel ball bearings for export in the Asian market. The company spent P30 million on the construction of the facilities and all equipment for production. In order for the company to have a huge sale, the price of each bearing is pegged at P, a price 30% lower than any company in the Asian market. Based on your research and study, you can estimate the average cost of production of each bearing. The cost is C, which includes the tax, cost of raw materials, fuel, electricity, transportation, labor, and all others. For the values of P and C, Tasks: P=1100 pesos C = 850 pesos 1. Make a progressive production plan so that at the end of 5 years, the company will recover the cost spent (P30,000,000) for the construction of the facilities and equipment, and at the same time earn a profit of P50,000,0000. Make a yearly computation of the revenues earned and the total profit earned at the end of 5 years. Write your solutions and production plan using a blank sheet.