5. An item which can be sold for P60 per unit is produced with the following cost: material cost, P14 per unit; labor cost of P12 per unit; fixed cost P12,000; variable cost of P8 per unit. What is the break-even sales in volume if 2 out of every 12 units produced is defective and is rejected with only full recovery on materials?

5. An item which can be sold for P60 per unit is produced with the following cost: material cost, P14 per unit; labor cost of P12 per unit; fixed cost P12,000; variable cost of P8 per unit. What is the break-even sales in volume if 2 out of every 12 units produced is defective and is rejected with only full recovery on materials?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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