Chris micro chip produces and sell its product at the price of P160 with its variable cost of P64. The company's fixed cost is 2,304,000 per annum. The company operates at a margin of safety which was at 40%. (1) Find the total sales made by the company. (1I) The company wants to introduce highly sophisticated modern chip completely new to the market with high research costs. Suggest the pricing method which will be suited for its new product.

Chris micro chip produces and sell its product at the price of P160 with its variable cost of P64. The company's fixed cost is 2,304,000 per annum. The company operates at a margin of safety which was at 40%. (1) Find the total sales made by the company. (1I) The company wants to introduce highly sophisticated modern chip completely new to the market with high research costs. Suggest the pricing method which will be suited for its new product.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 2P: Southland Corporation’s decision to produce a new line of recreational products resulted in the need...

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