The cost of producing a small transistor radio set consists of P23.00 for labor and P 370.00 for material. the fixed charges in operating the plant is P 100,000.00 per month. The variable cost is P 10.00 per set. The radio set can be sold for P 750.00 each. Determine how many sets must be produced per month to break-even.
The cost of producing a small transistor radio set consists of P23.00 for labor and P 370.00 for material. the fixed charges in operating the plant is P 100,000.00 per month. The variable cost is P 10.00 per set. The radio set can be sold for P 750.00 each. Determine how many sets must be produced per month to break-even.
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 4P
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21. The cost of producing a small transistor radio set consists of P23.00 for labor and P
370.00 for material. the fixed charges in operating the plant is P 100,000.00 per month.
The variable cost is P 10.00 per set. The radio set can be sold for P 750.00 each.
Determine how many sets must be produced per month to break-even.
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