1. A factory engaged in the fabrication of an automobile part with a production capacity of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point?

1. A factory engaged in the fabrication of an automobile part with a production capacity of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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