A production plant has the capacity to produce 2,000 tons per year. At full capacity, there are total variable costs of Php 100,000,000 and fixed costs of Php 35,000,000. a. What is the annual profit for the plant when working at full capacity (2,000 tons) and the product sells for Php 40 per pound? b. What is the total cost per pound at full capacity?

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A production plant has the capacity to produce 2,000 tons per year. At full capacity, there are total variable costs of Php 100,000,000 and fixed costs of Php 35,000,000.
a. What is the annual profit for the plant when working at full capacity (2,000 tons) and the product sells for Php 40 per pound?
b. What is the total cost per pound at full capacity?
Transcribed Image Text:A production plant has the capacity to produce 2,000 tons per year. At full capacity, there are total variable costs of Php 100,000,000 and fixed costs of Php 35,000,000. a. What is the annual profit for the plant when working at full capacity (2,000 tons) and the product sells for Php 40 per pound? b. What is the total cost per pound at full capacity?
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