Reference no: EM133171599

Question 1 - The Sangguniang Kabataan (SK) of San Francisco, Legazpi City intends to have a fund raising activity by selling Kooka Koala (a popular carbonated beverage) during the barangay fiesta. Kooka Koala can be bought from a dealer at P10 each and can be sold for P30 each. Any unsold bottle of Kooka Koala will be consumed by the the volunteer SK members who helped sell the product. The estimated number of bottles of Kooka Koala that can be sold during the barangay fiesta as well as their probabilities are as follows:

Number of bottles sold	Probability
200	0.20
300	0.30
500	0.40
900	0.10

Required - What is the conditional profit (loss) of purchasing 800 bottles but selling only 700 units?

Question 2 - The cumulative average labor cost per unit for the first batch (250 units per batch) produced using a modified process is P1200. The cumulative average labor cost after the second batch is P840.

Required -

1. What is the learning curve for the modified process (in percentage)?

2. Assuming that the learning curve continues, what is the total labor cost of four batches?