7. A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to the unavailability of the necessary foreign currency to finance the importation of the raw materials. The annual income is P430,000. The annual fixed cost is P190,000 and the variable cost is PO.348 per unit. What is the break-even point?

7. A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to the unavailability of the necessary foreign currency to finance the importation of the raw materials. The annual income is P430,000. The annual fixed cost is P190,000 and the variable cost is PO.348 per unit. What is the break-even point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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