BM2102

PROBLEM SOLVING FOR MANAGEMENT SCIENCE

NAME: SECTION: DATE: SCORE:

Quiz (6 items x 5 points)

1. A smartphone manufacturing company in Asia has monthly fixed costs of ₱20,000,000, and the variable
cost per handset is ₱35. The phones sell for ₱400.
a. For a monthly volume of 3,000,000 units, determine the total cost, total revenue, and profit.
b. Determine the monthly break-even volume for the smartphone manufacturer.
2. A central heating installation company has a fixed annual cost of ₱120,000. The variable costs are ₱1,000
per unit. The company charges ₱3,500 per unit installed.
a. For an annual volume of 57 units, determine the total cost, total revenue, and profit.
b. Determine the annual break-even volume for this company.
3. A paper mill has a monthly fixed cost of ₱253,000, and the variable cost per 90-page folio is ₱0.27. The
revenue per folio sold is ₱2.45.
a. For a monthly volume of 2,566 units, determine the total cost, total revenue, and profit.
b. Determine the monthly break-even volume for this company.
Rubric for grading computation:
CRITERIA POINTS
Complete solution with the correct answer 5
Theast two major steps of the solution are incorrect 4
Half of the solution is correct 3
The first two major steps of the solution are correct 2
The first major step of the solution is correct 1

REFERENCES
Taylor III, B. W. (2016). Introduction to Management Science (12th ed.). New York: Pearson Education Limited.

01 Problem Solving 1 *Property of STI

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