CVP excercises Situation 2 Revenue (price) per unit Peso per month per subscriber 550 Total Revenue

peso per month 550Q [ let Q is the break even quantity] Fixed Cost: Lease Agreement Peso per month 650000 Interlink subscription Peso per month 320000 Operating cost Peso per month 450000 Total fixed cost peso per month 1420000 Total Variable cost lease agreement Interlink Subscription Operating cost

peso per month peso per month peso per month

10% * 550*10000 + (Q-10000)*5% = 550000+ 0.5Q - 500 120*20000 + (Q-20000)*90 =240000 + 90Q - 180000 25Q

To solve the equation for Break even cost, we find, 550Q = 1420000+550000+0.5Q-500+240000+90Q-180000+25Q or, 550Q-25Q-90Q-.5Q = 2029500 or, 434.5Q = 2029500 or, Q = 4671 Ans. Break Even Quantity is 4671

Break Even Point in terms of Revenue: 2569050 Ans. Break even revenue 2569050

he break even quantity]

(Q-10000)*5%

0Q-180000+25Q

Regal Struggle Production (RSP) Version 1 RSP recieves 250,000,000

Production Cost Marketing Cost Profit, RSP Profit, Media Venture Version 2 RSP recieves Production Cost Marketing Cost other contract pay

5,000,000 50,000,000 (in against of investing 5,000,000) 195,000,000 45,000,000

250,000,000 21,000,000 62,500,000 (in against of investing 15,000,000) 25,000,000 (Contract A) 47,500,000 (Contract B)

Profit, RSP (con. A) Profit, RSP (con. B) Profit, Media Venture

141,500,000 119,000,000 47,500,000

In box office receipt term, Break even point for Contract A is 27% of Box office Results (108 at this point, cost and revenue would be the same In box office receipt term, Break even point for Contract B is 33% of Box office Results (131 at this point, cost and revenue would be the same

### ###

0.27 0.33

f Box office Results (108,500,000)

f Box office Results (131,000,000)