1. Alpha Foundry Services Incorporated produces a pair of eyebolt and nut at a labor cost of P0.70/pair and material cost of P1.60/pair. The fixed charge on the business is P25,000 a month while the variable cost is P0.50/pair. If the eyebolt and nut is sold at P5.50/pair, how many pairs of eyebolt and nut should be produced each month for the foundry to break-even?

1. Alpha Foundry Services Incorporated produces a pair of eyebolt and nut at a labor cost of P0.70/pair and material cost of P1.60/pair. The fixed charge on the business is P25,000 a month while the variable cost is P0.50/pair. If the eyebolt and nut is sold at P5.50/pair, how many pairs of eyebolt and nut should be produced each month for the foundry to break-even?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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