A firm is in the process of designing whether they should produce proprietary automobile parts. Based on research, operation cost is 20,000,000 pesos annually, material cost of each part is 3,000 pesos and the average price is 5,600 pesos. How many units must be sold to breakeven?

A firm is in the process of designing whether they should produce proprietary automobile parts. Based on research, operation cost is 20,000,000 pesos annually, material cost of each part is 3,000 pesos and the average price is 5,600 pesos. How many units must be sold to breakeven?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A firm is in the process of designing whether they should produce proprietary automobile parts. Based on
research, operation cost is 20,000,000 pesos annually, material cost of each part is 3,000 pesos and the
average price is 5,600 pesos. How many units must be sold to breakeven?

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