A concrete hollow blocks (CHB) plant has an overhead cost of P150,000 permonth. The material cost is P3.75 per unit and labor cost P2.25 per unit. Howmany units should be made per month to break-even if the selling price is P7.50per unit.

Break-even Point: The break-even point is that level of sales at which the operating income (EBIT)…

Answered: A concrete hollow blocks (CHB) plant…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A concrete hollow blocks (CHB) plant has an overhead cost of P150,000 per month. The material cost is P3.75 per unit and labor cost P2.25 per unit. How many units should be made per month to break-even if the selling price is P7.50 per unit.