INVENTORY MODEL

Samsung Electronics requires 25 transistors per month to make colored TV sets. The monthly storage cost is P2.00 per transistor and every time an order is placed, it cost Samsung P4.00.

1. If orders are filled immediately and no shortages are permitted, how many orders are to be made?

2. Of what size should be placed every month?

3. What is the monthly total cost of this inventory policy?

4. How much will be the ordering cost?

5. How much will be the carrying cost ?

BREAK EVEN ANALYSIS

A businessman buys a certain commodity at P23 per unit and sells them at P39 per unit. His fixed cost is P3,500. Due to stiff competition, the sale of the product began to decline. The selling price decreased by 4% of the units sold. The variable and fixed cost remain constant.

a) Represent the new selling price function.

b) Determine the TR, TC and Profit function.

c) Find the BEP quantity revenue.

d) What is the profit at a sale volume of 120 units.