A gym fabricates a special sports tape used for rock climbing. The shop can produce each pack of tape at a labor cost of P200. The cost of materials for each pack is P350. The variable cost amounts to P65/pack, while fixed charges incurred per annum totals P6900. Given that the special sports tape are sold at P780/pack, how many units must be produced and sold per annum so no losses will be incurred and the total cost is the same as gross revenue?
A gym fabricates a special sports tape used for rock climbing. The shop can produce each pack of tape at a labor cost of P200. The cost of materials for each pack is P350. The variable cost amounts to P65/pack, while fixed charges incurred per annum totals P6900. Given that the special sports tape are sold at P780/pack, how many units must be produced and sold per annum so no losses will be incurred and the total cost is the same as gross revenue?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A gym fabricates a special sports tape used for rock climbing. The shop can produce each pack of tape at a labor cost of P200. The cost of materials for each pack is P350. The variable cost amounts to P65/pack, while fixed charges incurred per annum totals P6900. Given that the special sports tape are sold at P780/pack, how many units must be produced and sold per annum so no losses will be incurred and the total cost is the same as gross revenue?
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