5. An item which can be sold for P60 per unit is produced with the following cost: material cost, P14 per unit; labor cost of P12 per unit; fixed cost P12,000; variable cost of P8 per unit. What is the break-even sales in volume if 2 out of every 12 units produced is defective and is rejected with only full recovery on materials?

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Q: 2                 3

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A: Refer to the attached image for the detailed solution:

Q: Step by step

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.