A company manufacturing calculator has a capacity of 200 units a month. The variable costs are P1,000 per unit. The average selling price of the calculators is P2,500. Fixed costs of the company amount to P150,000 per month, which include all taxes. (a) Determine the number of calculators that must be sold each month to break-even. (b) What is the profit or loss if 150 units were produced and sold per month?

A company manufacturing calculator has a capacity of 200 units a month. The variable costs are P1,000 per unit. The average selling price of the calculators is P2,500. Fixed costs of the company amount to P150,000 per month, which include all taxes. (a) Determine the number of calculators that must be sold each month to break-even. (b) What is the profit or loss if 150 units were produced and sold per month?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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