A small firm produces and sells novelty items in a five-barangay area. The firm expects to consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely scattered locations. The leading candidate for location will have a monthly fixed cost of Php 42,000 and variable costs of Php3 per card. Card sell for Pho7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break- even point?
A small firm produces and sells novelty items in a five-barangay area. The firm expects to consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely scattered locations. The leading candidate for location will have a monthly fixed cost of Php 42,000 and variable costs of Php3 per card. Card sell for Pho7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break- even point?
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 3VC
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A small firm produces and sells novelty items in a five-barangay area. The firm expects to
consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely
scattered locations. The leading candidate for location will have a monthly fixed cost of Php 42,000 and
variable costs of Php3 per card. Card sell for Pho7 each. Prepare a table that shows total profits, fixed costs,
variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break-
even point?
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