The function of identifying the profit is to identify the variable and fixed cost.

First, Identify the revenue.

Revenue:

P2.50 X 12,000 = P30,000

Cost:
The fixed cost is:
P3,000 (monthly rent)

P6,000 (packaging process)

Variable cost:
P15,000
Total cost:

9,000 + 15,000 = P24,000 (Total Cost)

Profit:
P30,000 – P24,000 = P6,000 (profit)
The total profit when selling 12,000 bottles of plant food in one month at the price of P2.50 is
P6,000.

Price Volume Revenue (Price X Total Cost (Fixed Profit (Revenue

Volume) cost + Variable – Total Cost)
cost)
P2.50 12,000 P30,000 P24,000 P6,000