Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case?  a. P = 120x – 50x – 70,000 b. C = 50x + 70,000 c. R = 120x d. no answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case? 
a. P = 120x – 50x – 70,000
b. C = 50x + 70,000
c. R = 120x

d. no answer

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