Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
An item which can be sold for P63.00 per unit wholesale is being produced with the following cost data; labor cost, P10 per unit; material cost, P15.00 per unit; fixed charges, P10,000.00; variable cost, P8.00 per unit. What is the break-even sales volume if two out of every 10 units produced is defective and is rejected with only full recovery materials?
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