In the production of a certain product, two operation are available. One will produce 40 units of the finished product per P1,000.00 worth of raw materials and will cost P4.20 per unit of the finished product. The other process will produce 44 units of the finished product per P1,000.00 worth of raw materials and will cost P5.60 per unit of the finished product. What is the break-even point in unit value of the finished product below which the low efficiency process should be used and above which high efficiency should be used?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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In the production of a certain product, two operation are available. One will

produce 40 units of the finished product per P1,000.00 worth of raw materials

and will cost P4.20 per unit of the finished product. The other process will

produce 44 units of the finished product per P1,000.00 worth of raw materials

and will cost P5.60 per unit of the finished product. What is the break-even point

in unit value of the finished product below which the low efficiency process

should be used and above which high efficiency should be used?

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