The cost of producing a certain commodity consists of 45.00 per unit for labor and material cost and 15.00 per unit for other variable cost. The fixed cost per month amounts to $450,000. If the commodity is sold at 250.00 each, what is the break-even quantity?

The cost of producing a certain commodity consists of 45.00 per unit for labor and material cost and 15.00 per unit for other variable cost. The fixed cost per month amounts to $450,000. If the commodity is sold at 250.00 each, what is the break-even quantity?

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

The cost of producing a certain commodity consists of
$45.00 per unit for labor and material cost and
15.00 per unit for other variable cost. The fixed cost
per month amounts to $450,000. If the commodity is
sold at 250.00 each, what is the break-even
quantity?
A) 2369
B 2014
C) 2178
D) 2589

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