1. A manufacturing company has a production capacity of 5000 units with an efficiency of 80%. The fixed costs is Php 78,000 while the variable cost is Php 130/unit. The output can be sold at Php 430/unit. Determine the profit at full production in pesos. 2. Based on the following data, determine the no. of units to be produced monthly to break even.
1. A manufacturing company has a production capacity of 5000 units with an efficiency of 80%. The fixed costs is Php 78,000 while the variable cost is Php 130/unit. The output can be sold at Php 430/unit. Determine the profit at full production in pesos. 2. Based on the following data, determine the no. of units to be produced monthly to break even.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Transcribed Image Text:Problem Set Break-Even Analysis
1. A manufacturing company has a production capacity of 5000 units with an efficiency of 80%.
The fixed costs is Php 78,000 while the variable cost is Php 130/unit. The output can be sold at
Php 430/unit. Determine the profit at full production in pesos.
2. Based on the following data, determine the no. of units to be produced monthly to break
even.
Cost of material/unit = Php 42
Cost of labor/unit = Php 48
Other variable cost/unit = Php 2.25
Fixed expenses monthly = Php 188,480
Selling price per unit = Php 195
3. Find the break-even point in terms of number of units produced per month using the
following data.
Total overhead expenses/month= Php 312,250
Other variable cost/unit = Php 3.28
Cost of labor/unit = Php 87.30
Selling price/unit = Php 350
4. Determine the selling price per unit of a certain product to be produced each month to
break-even if.
Number of units produced/month= Php 215
Cost of labor per unit = Php 250
Total overhead expenses/month= Php 110,000
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