Situation 1: XYZ is a company that produces packaging boxes that are being distributed in Manila. The company wants to expand its business by asking for support from the bank for additional capital. In line with this, they hired your agency to help them analyze their financial situation. You are tasked to present the result of the analysis during the meeting with the Board of Directors. Using the data gathered, annual profit can be approximated by P(x)= x³-5x²-8x+48 where R(x) is the total profit in hundreds of thousands of pesos and x is the number of products that were produced in thousands. Your presentation must include a table that shows the profit of the company for a specific number of products being produced (1000, 2000, 3000, 4000, 5000). This table should also be presented in graphical form so that it will be easy for the Board of Directors to analyze the financial situation of the company. You should also be prepared for the possible questions that might arise during the presentation. The list of questions is given below. Provide an answer for each question with corresponding solutions for nos. 1, 2, and 4. 1. Using the Profit Function (P(x)=x²-5x²-8x+48), give the total profit for producing 4700 units. 2. How much will be the expected annual profit for producing 2500 products? How much will be its monthly profit? 3. How many products must be produced to generate a profit of P 3.6 million pesos? 4. How many products must be produced to break even (no profit, no loss)? Why? 5. Does the model (function) represent a realistic estimate of the profit for all future sales of the company? Why? Why not?
Situation 1: XYZ is a company that produces packaging boxes that are being distributed in Manila. The company wants to expand its business by asking for support from the bank for additional capital. In line with this, they hired your agency to help them analyze their financial situation. You are tasked to present the result of the analysis during the meeting with the Board of Directors. Using the data gathered, annual profit can be approximated by P(x)= x³-5x²-8x+48 where R(x) is the total profit in hundreds of thousands of pesos and x is the number of products that were produced in thousands. Your presentation must include a table that shows the profit of the company for a specific number of products being produced (1000, 2000, 3000, 4000, 5000). This table should also be presented in graphical form so that it will be easy for the Board of Directors to analyze the financial situation of the company. You should also be prepared for the possible questions that might arise during the presentation. The list of questions is given below. Provide an answer for each question with corresponding solutions for nos. 1, 2, and 4. 1. Using the Profit Function (P(x)=x²-5x²-8x+48), give the total profit for producing 4700 units. 2. How much will be the expected annual profit for producing 2500 products? How much will be its monthly profit? 3. How many products must be produced to generate a profit of P 3.6 million pesos? 4. How many products must be produced to break even (no profit, no loss)? Why? 5. Does the model (function) represent a realistic estimate of the profit for all future sales of the company? Why? Why not?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Subject: business (economics)
Transcribed Image Text:Situation 1:
XYZ is a company that produces packaging boxes that are being distributed in Manila.
The company wants to expand its business by asking for support from the bank for
additional capital. In line with this, they hired your agency to help them analyze their financial
situation. You are tasked to present the result of the analysis during the meeting with the Board
of Directors.
Using the data gathered, annual profit can be approximated by P(x)= x³-5x²-8x+48
where R(x) is the total profit in hundreds of thousands of pesos and x is the number of
products that were produced in thousands. Your presentation must include a table that
shows the profit of the company for a specific number of products being produced
(1000, 2000, 3000, 4000, 5000). This table should also be presented in graphical form
so that it will be easy for the Board of Directors to analyze the financial situation of the
company. You should also be prepared for the possible questions that might arise during the
presentation. The list of questions is given below. Provide an answer for each question with
corresponding solutions for nos. 1, 2, and 4.
1. Using the Profit Function (P(x)=x²-5x²-8x+48), give the total profit for producing
4700 units.
2. How much will be the expected annual profit for producing 2500 products? How
much will be its monthly profit?
3. How many products must be produced to generate a profit of P 3.6 million pesos?
4. How many products must be produced to break even (no profit, no loss)? Why?
5. Does the model (function) represent a realistic estimate of the profit for all future
sales of the company? Why? Why not?
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