It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years Oc 23 years Od. 25 years

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
12
Answer the items with complete solution
It costs P1000.00 for hand tools and P1.50 labor
per unit to manufacture a product. Another
| alternative is to manufacture the product by an
automated process that costs P15,000.00 with a
PO.50 per unit cost. With an annual production rate
of 5000 units, how long will take to reach the break-
even point?
O a 28 years
Ob 18 years
O. 23 years
Od. 25 years
1.
A certain firm produces certain products at a labor
cost of P500.00 per unit, variable and material cost
of P420.00. If the selling price is P1,500.00 per unit,
how many units must be produced each month to
break even assuming that the fixed monthly cost if
P600,000.00.
O a 1.035 units
O b. 1.530 units
O. 1,305 units
2.
Od. 1,053 units
A certain firm has the capacity to produce 650,000
units of product per year. At present it is operating
at 70% capacity. The firm's annual income is
P7,860,000.00. Annual fixed cost is P3,820,000 and
the variable costs are equal to P5.56 per unit of
product. What is the firm's annual profit or loss and
what volume of sales does the firm break even?
O a P6,439,800
Ob P6,493,800
OC P6,349,800
Od. P6,349,080
3.
Transcribed Image Text:Answer the items with complete solution It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another | alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years O. 23 years Od. 25 years 1. A certain firm produces certain products at a labor cost of P500.00 per unit, variable and material cost of P420.00. If the selling price is P1,500.00 per unit, how many units must be produced each month to break even assuming that the fixed monthly cost if P600,000.00. O a 1.035 units O b. 1.530 units O. 1,305 units 2. Od. 1,053 units A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even? O a P6,439,800 Ob P6,493,800 OC P6,349,800 Od. P6,349,080 3.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Current Account
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education