A small shop in Bulacan fabricates threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to breakeven?

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 small shop in Bulacan fabricates threshers for palay producers in the locality. The shop can produce
each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs
amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable
threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to
breakeven?
Transcribed Image Text:A small shop in Bulacan fabricates threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to breakeven?
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