Scribd Logo
Upload

Welcome to Scribd!

  • SW 5 Problem No. 25

    Uploaded by

    whee manobal
    5 views3 pages
    A factory runs at 60% efficiency with fixed costs of 60,000 PHP and variable costs of 130 PHP per unit. It sells products for 400 PHP each and has a production capacity of 4000 units. To calculate profit, the factory's production capacity at 60% efficiency is calculated to be 2400 units. Total revenue from selling 2400 units is 960,000 PHP. Total costs are 372,000 PHP. Profit is calculated as total revenue minus total costs, which equals 588,000 PHP.

    Original Description:

    ENGINEERING MATHEMATICS

    Original Title

    sw-5-problem-no.-25

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    A factory runs at 60% efficiency with fixed costs of 60,000 PHP and variable costs of 130 PHP per unit. It sells products for 400 PHP each and has a production capacity of 4000 units. To calculate profit, the factory's production capacity at 60% efficiency is calculated to be 2400 units. Total revenue from selling 2400 units is 960,000 PHP. Total costs are 372,000 PHP. Profit is calculated as total revenue minus total costs, which equals 588,000 PHP.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views3 pages

    SW 5 Problem No. 25

    Uploaded by

    whee manobal
    A factory runs at 60% efficiency with fixed costs of 60,000 PHP and variable costs of 130 PHP per unit. It sells products for 400 PHP each and has a production capacity of 4000 units. To calculate profit, the factory's production capacity at 60% efficiency is calculated to be 2400 units. Total revenue from selling 2400 units is 960,000 PHP. Total costs are 372,000 PHP. Profit is calculated as total revenue minus total costs, which equals 588,000 PHP.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Problem No.

    25

    A factory is running 60% efficiency with a fixed co st of P60,000.00, variable cost per unit of
    P130.00, selling price per unit of P400.00, and a production capacity of 4000 units. What is the current
    profit of the factory if all products manufactured are sold?

    A. P1,352,000.00 B. P430,000.00 C. P1,066,000.00 D. P784,000

    Given:

    60% efficiency

    Fixed cost- Php 60, 000.00

    Variable cost- Php 130.00/ unit

    Sellling price – Php 400.00/ unit

    Production Capacity- 4000 units

    Required:

    Current profit of the factory if all products manufactured are sold

    Solution:

    The formula for the profit is,

    Profit = Total Revenue - Total Cost

    Total Cost = Fixed Cost + Variable Cost

    Since the factory is 60% running efficiency,

    Efficiency = Factory capacity/ Production Capacity

    0.6 = Factory capacity/ 4000

    Factory capacity = 2400 units

    Total Cost = Php 60,000 + Php 130.00 (2400 units)

    Total Cost = Php 372,000.00


    Total Revenue = Php 400 (2400 units)

    Total Revenue = Php 960,000.00

    To get the profit,

    Profit = Total Revenue - Total Cost

    Profit = Php 960,000.00 - Php 372,000.00

    Profit = Php 588,000.00

    Final Answer:

    Thus, the current profit of the factory if all products manufactured are sold is Php588,000.00.

    Therefore, the answer is letter C.

    Problem No. 25

    A factory is running 60% efficiency with a fixed co st of P60,000.00, variable cost per unit of
    P130.00, selling price per unit of P400.00, and a production capacity of 4000 units. What is the current
    profit of the factory if all products manufactured are sold?

    A. P1,352,000.00 B. P430,000.00 C. P1,066,000.00 D. P784,000

    Given:

    60% efficiency

    Fixed cost- Php 60, 000.00

    Variable cost- Php 130.00/ unit

    Sellling price – Php 400.00/ unit

    Production Capacity- 4000 units

    Required:

    Current profit of the factory if all products manufactured are sold

    Solution:
    The formula for the profit is,

    Profit = Total Revenue - Total Cost

    Total Cost = Fixed Cost + Variable Cost

    Since the factory is 60% running efficiency,

    Efficiency = Factory capacity/ Production Capacity

    0.6 = Factory capacity/ 4000

    Factory capacity = 2400 units

    Total Cost = Php 60,000 + Php 130.00 (2400 units)

    Total Cost = Php 372,000.00

    Total Revenue = Php 400 (2400 units)

    Total Revenue = Php 960,000.00

    To get the profit,

    Profit = Total Revenue - Total Cost

    Profit = Php 960,000.00 - Php 372,000.00

    Profit = Php 588,000.00

    Final Answer:

    Thus, the current profit of the factory if all products manufactured are sold is Php588,000.00.

    Therefore, the answer is letter C.

    You might also like