Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Selling price: $167 Material and purchased parts: $25/unit Direct labor: 2 hrs at $20 per hour Fixed cost: $1,400,000 If the overhead expenses are charged at 80% of labor cost, determine the breakeven volume for this product. 8,383 14,433 20,000 26,666

Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Selling price: $167 Material and purchased parts: $25/unit Direct labor: 2 hrs at $20 per hour Fixed cost: $1,400,000 If the overhead expenses are charged at 80% of labor cost, determine the breakeven volume for this product. 8,383 14,433 20,000 26,666

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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