A local factory assembling calculators produces 400 units per month and sells them at P1,800 each. Dividends are 10% on P10,000 shares with par value of P200 each. The fixed operating cost per month is P20,000. Other costs are P1,000 per unit. Determine the break-even point. If only 200 units were produced per month determine the profit or loss.
A local factory assembling calculators produces 400 units per month and sells them at P1,800 each. Dividends are 10% on P10,000 shares with par value of P200 each. The fixed operating cost per month is P20,000. Other costs are P1,000 per unit. Determine the break-even point. If only 200 units were produced per month determine the profit or loss.
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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A local factory assembling calculators produces 400 units per month and sells them at P1,800 each. Dividends are 10% on P10,000 shares with par value of P200 each. The fixed operating cost per month is P20,000. Other costs are P1,000 per unit. Determine the break-even point. If only 200 units were produced per month determine the profit or loss.
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