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Metro Jaya factory manufactures eraser products. Each unit of their eraser costs RM4 and the variable cost of producing one unit of eraser is 20% of the selling price per unit. The fixed cost is RM24,000. Calculate the break-even point for the company.

Metro Jaya factory manufactures eraser products. Each unit of their eraser costs RM4 and the variable cost of producing one unit of eraser is 20% of the selling price per unit. The fixed cost is RM24,000. Calculate the break-even point for the company.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a) Metro Jaya factory manufactures eraser products. Each unit of their eraser costs RM4 and the variable cost of producing one unit of eraser is 20% of the selling price per unit. The fixed cost is RM24,000. Calculate the break-even point for the company. b) Sketch a simple graph of equilibrium price and quantity where price(P) is on the y- axis and quantity(x) is on the x-axis. Show the point of intersection of the supply and demand equation.
Transcribed Image Text:a) Metro Jaya factory manufactures eraser products. Each unit of their eraser costs RM4 and the variable cost of producing one unit of eraser is 20% of the selling price per unit. The fixed cost is RM24,000. Calculate the break-even point for the company. b) Sketch a simple graph of equilibrium price and quantity where price(P) is on the y- axis and quantity(x) is on the x-axis. Show the point of intersection of the supply and demand equation.
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