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Determine the monthly break-even volume for the company

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Reference no: EM132816307

Problem - A company that produces fertilizer has a fixed monthly cost of P250,000 and its variable cost per pound of fertilizer is P15. The company sells the fertilizer for P40 per pound.

a. Find the total cost, total revenue, and profit function.

b. Determine the monthly break-even volume for the company.

c. Graph the total cost and total revenue and determine also the break-even point.

d. If the company changes the price of its fertilizer from P40 to P60 per pound, what effect will the change have on the break-even volume?

e. If the company changes its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from P15 to P22. What effect will this change have on the break-even volume?

Reference no: EM132816307

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