A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at labor cost of P1,813. The cost of materials for each unit is P2,527. The variable costs amount to P651 per unit, while fixed charges incurred per annum totals P69,428. If the portable threshers are sold at P7,865 per unit, how many units must be produced and sold per annum to break-even?

A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at labor cost of P1,813. The cost of materials for each unit is P2,527. The variable costs amount to P651 per unit, while fixed charges incurred per annum totals P69,428. If the portable threshers are sold at P7,865 per unit, how many units must be produced and sold per annum to break-even?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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