2. A local company assembling stereocassettes produces 300 units per monthat a cost of P 800 per unit. Each stereoradio cassette sells for P 1,200. If thefirm makes a profit of 10% on its 1,000shares with a par value of P 200 pershare, and the fixed costs are P 20million per month.(a) What is the break-evenpoint?(b) How must is the loss orprofit if only 100 units areproduced in a givenmonth?Answer: [(a) 50 units per month; (b) P3,300 per month]

Answer Income =1200 per unitFixed Cost=20,000 per monthVariable Cost =800 per unitDividend=10% per…

Answered: (a) What is the break-even point?

Business

Economics

(a) What is the break-even point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

2. A local company assembling stereo
cassettes produces 300 units per month
at a cost of P 800 per unit. Each stereo
radio cassette sells for P 1,200. If the
firm makes a profit of 10% on its 1,000
shares with a par value of P 200 per
share, and the fixed costs are P 20
million per month.
(a) What is the break-even
point?
(b) How must is the loss or
profit if only 100 units are
produced in a given
month?
Answer: [(a) 50 units per month; (b) P
3,300 per month]

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