Maria sells eyeshield protective gears for industrial field. Each pack of eyeshield protective gear is sold for P380 during regular hours,

that is, from 7:30 am to 12:30 pm. If every pack is sold by 12:30 pm, Maria calls it a day.

However, all unsold packs by 12:30 pm are sold at half the regular price up tp 5:30 pm.

The variable cost per box is P 150.

Required:

1. How much is contribution margin per pack from 7:30 am to 12:30 pm?

2. How much is loss per pack after 12:30 pm?

Transcribed Image Text:

In relation to the details cited above, past experience has shown that daily sales demand (up to 12:30 pm) and their probabilities are as follows: Sales per day 50 packs 75 packs Probability 0.05 0.10 If the sales demand will be the same as in the past, prepare a payoff table showing the contribution margin (Conditional Value) for the possible sales quantities under each production level strategy, as well as the expected value of such contribution margin that can be constructed. Required: 1. Payoff Table 2. Based on your payoff table, what is the best course of action? Encircle the row of the best course of action or payoff. In relation to the details cited above, past experience has shown that daily sales demand (up to 12:30 pm) and their probabilities are as follows: Sales per day 50 packs 75 packs Probability 0.05 0.10 If the sales demand will be the same as in the past, prepare a payoff table showing the contribution margin (Conditional Value) for the possible sales quantities under each production level strategy, as well as the expected value of such contribution margin that can be constructed. Required: 1. Payoff Table 2. Based on your payoff table, what is the best course of action? Encircle the row of the best course of action or payoff.

Answer rating: 100% (QA)

Part I 1 Selling Price 380 Variable Cost 150 Contribution Margin 230 2 How much is loss per pack aft... View the full answer