Break-even Analysis A shoe manufacturer produces a pair ofshoes at a labor cost of P9.00 a pair and amaterial cost of P8.00 a pair. The fixedcharges on the business are P90,000 amonth and the variable costs are P4.00 apair. If the shoes sells at P30 a pair, howmany pairs must be produced each monthfor the manufacturer to break-even.2.A local company assembling stereo radiocassette produces 300 units per month at acost of P800.00 per unit. Each stereo radiocassette sells for P1,200.00. If the firmmakes a profit of 10% on its, 10,000 shareswith a par value of P200.00 per share, andthe total fixed cost are P20,000 per month.What is the break even point and how muchis the loss or profit if only 100 units areproduced in a given month?

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1. A shoe manufacturer produces a pair of shoes at a labor cost of P9.00 a pair and a material cost of P8.00 a pair. The fixed charges on the business are P90,000 a month and the variable costs are P4.00 a pair. If the shoes sells at P30 a pair, how many pairs must be produced each month for the manufacturer to break-even.

1. A shoe manufacturer produces a pair of shoes at a labor cost of P9.00 a pair and a material cost of P8.00 a pair. The fixed charges on the business are P90,000 a month and the variable costs are P4.00 a pair. If the shoes sells at P30 a pair, how many pairs must be produced each month for the manufacturer to break-even.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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