Compute for the expected demand for product

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Reference no: EM131622200

LMC Corporation intends to produce and sell two new products , A and B. The company will be usingthe same facilities in producing both products. Annual total fixed costwill remainthe same atP2,5000,000. The selling priceoer unitof A and B are P700and P800each respectively.Variable cost rateis 40%Based on previousexperiencesthe following probabilitydistribuyion wasprepared;Quantity demand; 3,000, A(none) B 0.20, Quantity demand 5,000, A 0.30, B0.20.Quantity demand 10,000,A0.20, B0.40. 15,000, A0.30 and B 0.20, Quantity demanded 20,000, A0.20, B 0.20; a) compute for break-even(units)for product A___. b) Compute for break even (pesos) in product B.c) Compute for the expected demand for product A. d) Compute for expected demand for product B. e) In terms of income, which product will be produce?

Reference no: EM131622200

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