A company owned by juan is producing a certain item in which is sold at P740.00 each. The fixed cost per month amounts to P850,000. The cost of material and labor is P102.00 per unit and P54.00 per unit for the other variable cost. What is the break-even quantity per month? How many units must be produced each month in order that the net profit equals the cost?
A company owned by juan is producing a certain item in which is sold at P740.00 each. The fixed cost per month amounts to P850,000. The cost of material and labor is P102.00 per unit and P54.00 per unit for the other variable cost. What is the break-even quantity per month? How many units must be produced each month in order that the net profit equals the cost?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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A company owned by juan is producing a certain item in which is sold at P740.00 each. The fixed cost per month amounts to P850,000. The cost of material and labor is P102.00 per unit and P54.00 per unit for the other variable cost.
What is the break-even quantity per month?
How many units must be produced each month in order that the net profit equals the cost?
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