A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to fiancé the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000 and variable costs are PO.348 per unit. What is the breakeven point?

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
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A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units
per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to
fiancé the importation of their raw materials. The annual income is P430,000, annual fixed costs are
P190,000 and variable costs are P0.348 per unit. What is the breakeven point?
Transcribed Image Text:A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to fiancé the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000 and variable costs are P0.348 per unit. What is the breakeven point?
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