A tire manufacturer produces a piece of tire at a labor cost of 0.50 pesos and material at 3.00 pesos. The fixed charges on business are 50,000 pesos a month and the variable cost is 0.50 pesos a piece. If one tire sells for 6.00 pesos each, how many pieces must be produced each month for the manufacturer to break-even?

A tire manufacturer produces a piece of tire at a labor cost of 0.50 pesos and material at 3.00 pesos. The fixed charges on business are 50,000 pesos a month and the variable cost is 0.50 pesos a piece. If one tire sells for 6.00 pesos each, how many pieces must be produced each month 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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