Janine’s Bakeshop is doing well that it needed to expand its operation. This coming September, she decides to rent an additional space for P15,000 per month and bought additional equipment with a monthly depreciation cost of P8,000. These add to her current cost of P45,000 per month as she is open daily. The variable cost per piece of her famous pastry is P21. With this new setup, she can sell a net of 500 pcs per day. For peso amounts, round your answers to the nearest cents (i.e. two decimal places). a. How much is the minimum selling price to breakeven? b. She decided to sell at P30 per piece. At what quantity per day will she breakeven? c. If she wants to earn a profit of at least P3,000 per day and can sell 500 pastries a day, what should her selling price be?
Janine’s Bakeshop is doing well that it needed to expand its operation. This coming September, she decides to rent an additional space for P15,000 per month and bought additional equipment with a monthly depreciation cost of P8,000. These add to her current cost of P45,000 per month as she is open daily. The variable cost per piece of her famous pastry is P21. With this new setup, she can sell a net of 500 pcs per day. For peso amounts, round your answers to the nearest cents (i.e. two decimal places).
a. How much is the minimum selling price to breakeven?
b. She decided to sell at P30 per piece. At what quantity per day will she breakeven?
c. If she wants to earn a profit of at least P3,000 per day and can sell 500 pastries a day, what
should her selling price be?
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