2. An automobile company sells certain automotive parts. Present sales volume is 450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per year. What is the break-even point in pesos?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

number 2 only

of 600,000 units per year is only operating 60% capacity due to unavailability of
materials. The annual income is P400,000, annual fixed costs are P180,000 and
variable costs are P0.35 per unit. What is the break-even point?
2. An automobile company sells certain automotive parts. Present sales volume is
450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per
year. What is the break-even point in pesos?
Transcribed Image Text:of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point? 2. An automobile company sells certain automotive parts. Present sales volume is 450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per year. What is the break-even point in pesos?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Purchasing Power
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education