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ENeven

The document outlines various break-even analysis problems for different businesses, including a businessman selling commodities, an electronics company, a fertilizer company, a video production company, a cheese manufacturer, and a cleaning products company. Each problem involves calculating total revenue, total cost, profit, and break-even volume based on given fixed and variable costs, selling prices, and sales volumes. The problems require mathematical representations and solutions to assess financial viability and pricing strategies.

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5 views

ENeven

The document outlines various break-even analysis problems for different businesses, including a businessman selling commodities, an electronics company, a fertilizer company, a video production company, a cheese manufacturer, and a cleaning products company. Each problem involves calculating total revenue, total cost, profit, and break-even volume based on given fixed and variable costs, selling prices, and sales volumes. The problems require mathematical representations and solutions to assess financial viability and pricing strategies.

Uploaded by

meyawella24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ENRICHMENT ACTIVITY ( BREAK-EVEN ANALYSIS)

PROBLEM SOLVING

1. A businessman buys a certain commodity at P23 per unit and sells them at P39 per unit. His fixed cost
is P3,500.00. 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 sales volume of 120 units?

2. The SSS Electronic company produces calculators. The annual fixed cost of producti9ng calculators is
P450,0000. The variable cost of producing a calculator is P100. The company sell the calculators for
P250. Given an annual volume of 50,0000 calculators, determine the total cost, total sales, profit and
break-even sales volume.

3. The SJS Fertilizer Company produces fertilizer. The fixed monthly cost is P125,000 and the variable cost
per kilo of fertilizer is P65. The fertilizer sells for P85 per kilo. Determine the monthly break-even volume
for the company. If the company changes the price of its fertilizer to P95, what will the change on the
break-even volume?

4. A video production company is planning to produce a short film. The producer estimates that it will
cost P2,500,000 to shoot the video and P100 per unit to copy and distribute the VCD. The VCD will be
sold for P175 per copy. Determine the break-even volume.

5. The WSS Company makes the first class cheese, which it sells at major supermarkets. The fixed
monthly cost of production is P150,000, and the variable cost per 100 grams of cheese is P20. The
cheese sells P30 per 100 grams; however, the company is considering raising the price to P35 per 100
grams. The company presently produces and sells 1,000 kilograms of cheese per month, but if it rises its
price per pound, sales will decrease to 750 kilograms per month. Should the company raise the price?

6. A certain company produces cleaning products is considering a proposal to begin production of a new
detergent that would cost P19 per bar to make and distribute, and retail for P24. Fixed cost for the
operation would be P30,000 a week. Assume that all output can be sold. What would the total cost, total
sales, and profit (loss) be for a weekly volume of 100,000 bars. What is the break-even volume?

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