1. Problem Solving. Round off up to two decimal points.

1. The Nutty Co had been producing chocolates. It accepted an order from a client to produce 1,500 boxes at a selling price of P70 per box. The following costs were gathered from the firm:

Variable production costs P30 per box

Variable operating expenses P10 per box

Fixed factory overhead P40,000

Fixed operating expenses P60,000

Another chocolate maker was willing to produce the chocolates at P65 per box.

1. Should Nutty make or buy the products?
2. What should be the cut-off selling price that Nutty can accommodate?

2. The following are gathered for MeMe Inc.

Sales 1,400,000

Variable Costs 560,000

Fixed Costs 800,000

Net Income 40,000

Selling price per unit 30

1. Compute the break-even sales in units and in pesos
2. Compute the sales volume needed for a desired net income of 150,000.

3. Marvel Company has budgeted production for next year as follows:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Production in units	50,000	48,000	54,000	66,000

Ten pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 10,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. What would budgeted purchases of raw materials in the second quarter be?

*Automatic thumbs up for complete answers and thank you for your time.