A manufacturer produces a certain commodity at a labor cost of P315 each, material cost of P100 each and variable cost of P3 each. If the item has a unit price of P995, how may units must be produced each month for the manufacturer to break even if the monthly overhead is P461,600? 850 units 800 units 900 units 750 units

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
icon
Related questions
icon
Concept explainers
Topic Video
Question
A manufacturer produces a certain commodity at a labor cost of P315 each,
material cost of P100 each and variable cost of P3 each. If the item has a unit
price of P995, how may units must be produced each month for the
manufacturer to break even if the monthly overhead is P461,600?
850 units
800 units
900 units
750 units
Transcribed Image Text:A manufacturer produces a certain commodity at a labor cost of P315 each, material cost of P100 each and variable cost of P3 each. If the item has a unit price of P995, how may units must be produced each month for the manufacturer to break even if the monthly overhead is P461,600? 850 units 800 units 900 units 750 units
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning