A manufacturer produces a piece of plywood at a labor cost of P20.00 and material at P35.00. The fixed charges on business are P150,000.00 a month and the variable cost is P20.00 a piece. If one plywood sells for P60.00 each, how many pieces must be produced each month for the manufacturer to break even?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A manufacturer produces a piece of plywood at a
labor cost of P20.00 and material at P35.00. The
fixed charges on business are P150,000.00 a month
and the variable cost is P20.00 a piece. If one
plywood sells for P60.00 each, how many pieces
must be produced each month for the manufacturer
to break even?
Transcribed Image Text:A manufacturer produces a piece of plywood at a labor cost of P20.00 and material at P35.00. The fixed charges on business are P150,000.00 a month and the variable cost is P20.00 a piece. If one plywood sells for P60.00 each, how many pieces must be produced each month for the manufacturer to break even?
a. 5,000 pieces
b. 6,000 pieces
c. 6,500 pieces
d. 6,040 pieces
Transcribed Image Text:a. 5,000 pieces b. 6,000 pieces c. 6,500 pieces d. 6,040 pieces
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