BAHALANA COMPANY PRODUCES AND SELLS PRODUCT Z. EACH UNIT OF PRODU...

82 . Bahalana Company produces and sells Product Z. Each unit of Product Z contributes P5 to

the recovery of fixed costs and generation of profit.Total fixed costs amounts to P200,000

per period. Selling price of Product Z is P20 per unit.

For the coming period, the company believes that there is a 70% chance that the sales of

Product Z will be 80,000 units, and a 30% chance that sales will equal 10,000 units. The

expected profit from Product Z for the coming period is:

a. P 95,000 c. P 80,000

b. P250,000 d. P295,000

BASIC MAS CONCEPTS