Task 1: Solution/computation of the breakeven price and profit for the production of 1,000,000 bearings

Task 2: Five-Year Progressive Production Plan

Solution of the number of bearings to be manufactured for 5 years and the recoverycost

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 $30 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 study, you can estimate the average cost of production of each hearing. 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, P: 1,100 pesos C: 850 pesos Tasks: 1. Determine the breakeven price of 1,000,000 bearings. Then, determine the profit that the company will earn from selling it at the pegged price. 2. Make a progressive production plan so that at the end of 5 years, the company will recover the cost spent ($30,000,000) for the construction of the facilities and equipment, and at the same time earn a profit of $50,000,0000. Make a yearly computation of the revenues earned and the total profit earned at the end of 5 years