1. Alpha Foundry Services Incorporated produces a pair of eyebolt and nut at a labor cost of P0.70/pair and material cost of P1.60/pair. The fixed charge on the business is P25,000 a month while the variable cost is P0.50/pair. If the eyebolt and nut is sold at P5.50/pair, how many pairs of eyebolt and nut should be produced each month for the foundry to break-even?

1. Alpha Foundry Services Incorporated produces a pair of eyebolt and nut at a labor cost of P0.70/pair and material cost of P1.60/pair. The fixed charge on the business is P25,000 a month while the variable cost is P0.50/pair. If the eyebolt and nut is sold at P5.50/pair, how many pairs of eyebolt and nut should be produced each month for the foundry to break-even?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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