(Answered) : Owner Mang Juan S Bakery Contemplating Adding Spanish Bread Line Require Leasing New Equip Q35339301

The owner Mang Juan’s Bakery is contemplating adding Spanishbread to his line, which will require leasing new equipment for amonthly payment of PhP 10,000. Variable costs would be PhP 2.00 perSpanish bread, and it would retail for PhP 7.00 each. Please answerthe following questions:

a. How many Spanish bread must be sold in order to breakeven?

b. What would the profit (loss) be if 1,500 Spanish bread aremade and sold in a month?

c. How many Spanish bread must be sold to realize a profit ofPhP3,000?

d. If 2,000 can be sold, and a profit target is PhP5,000, whatprice should be charged per piece?

e.