The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even
The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 4P
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The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine
If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even
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