A. Complete the cost and revenue schedule. Selling price is at P17.50/unit.

Output TFC TVC TC MC TR MR PROFIT/LOSS

0 35 0 35 0 0 0 -35
4 35 50 85 12.5 70 17.5 -15
6 35 65 100 7.5 105 17.5 5
8 35 85 120 10 140 17.5 20
10 35 100 135 7.5 175 17.5 40
12 35 135 170 17.5 210 17.5 40
14 35 175 210 20 245 17.5 35
16 35 230 265 27.5 280 17.5 15
18 35 300 335 35 315 17.5 -20
20 35 350 385 25 350 17.5 -35

B. Determine the breakeven point through graphical method. Identify the profit and loss areas.
Label your graph properly.

500

400

300

200

100

0
0 4 6 8 10 12 14 16 18 20

-100

TC TR PROFIT/LOSS

Breakeven Point –

ECON – CA
C. Determine the profit maximization point using the MC=MR rule.

Outpu TFC TVC TC MC TR MR PROFIT/LOSS

t
0 35 0 35 0 0 0 -35
4 35 50 85 12.5 70 17.5 -15
6 35 65 100 7.5 105 17.5 5
8 35 85 120 10 140 17.5 20
10 35 100 135 7.5 175 17.5 40
12 35 135 170 17.5 210 17.5 40
14 35 175 210 20 245 17.5 35
16 35 230 265 27.5 280 17.5 15
18 35 300 335 35 315 17.5 -20
20 35 350 385 25 350 17.5 -35

That is maximization point, where MC=MR.

ECON – CA