The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even

The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.50 per set. The radio set can be sold for P78.00 each. Determine How many sets must be produced per month to break-even? How many sets must be produced per month to each at least P 100,000 If the price drops by 10% after selling 5,000 units, how many sets must be produced per month to break-even
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