A plywood manufacturer produces a piece of plywood atmaterial cost of P3.00. The fixed charges of the busines are P50,000 a month and thevariable cost is P0.50 apiece. If one piece of plywood sells for PE.00, How manypieces must be produced each moth for the manufacturer to break even?a labor cost of P0.50 and

Break-even point refers to the situation where the total revenue is equal to total cost.

A plywood manufacturer produces a piece of plywood at a labor cost of PO.50 and material cost of P3.00. The fixed charges of the business are P50, 000 a month and the variable cost is PO.50 apiece. If one piece of plywood sells for P6.00, How many pieces must be produced each moth for the manufacturer to break even?

A plywood manufacturer produces a piece of plywood at a labor cost of PO.50 and material cost of P3.00. The fixed charges of the business are P50, 000 a month and the variable cost is PO.50 apiece. If one piece of plywood sells for P6.00, How many pieces must be produced each moth for the manufacturer to break even?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.1CE

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