12 Answer the items with complete solutionIt costs P1000.00 for hand tools and P1.50 laborper unit to manufacture a product. Another| alternative is to manufacture the product by anautomated process that costs P15,000.00 with aPO.50 per unit cost. With an annual production rateof 5000 units, how long will take to reach the break-even point?O a 28 yearsOb 18 yearsO. 23 yearsOd. 25 years1.A certain firm produces certain products at a laborcost of P500.00 per unit, variable and material costof P420.00. If the selling price is P1,500.00 per unit,how many units must be produced each month tobreak even assuming that the fixed monthly cost ifP600,000.00.O a 1.035 unitsO b. 1.530 unitsO. 1,305 units2.Od. 1,053 unitsA certain firm has the capacity to produce 650,000units of product per year. At present it is operatingat 70% capacity. The firm's annual income isP7,860,000.00. Annual fixed cost is P3,820,000 andthe variable costs are equal to P5.56 per unit ofproduct. What is the firm's annual profit or loss andwhat volume of sales does the firm break even?O a P6,439,800Ob P6,493,800OC P6,349,800Od. P6,349,0803.

Answered: Image /qna-images/answer/0dc120ca-9159-4ecb-a89a-6a1e98775e65.jpg

It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years Oc 23 years Od. 25 years

It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years Oc 23 years Od. 25 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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