A hollow biocks making business can produce 15,000 pieces per week. Their manager determined that in order to achieve this production, they need to spend P90,000 weekly for raw materials, electricity, labor and transportation. The company also pays a fixed amount of P10,000 weekly. a. How much per piece should they sell their hollow blocks to gain a profit of 40%% of their total cost? b. How many holow blocks do they need to sell every week to breakeven? c. Find their profit if they run at 80% efficiency.

A hollow biocks making business can produce 15,000 pieces per week. Their manager determined that in order to achieve this production, they need to spend P90,000 weekly for raw materials, electricity, labor and transportation. The company also pays a fixed amount of P10,000 weekly. a. How much per piece should they sell their hollow blocks to gain a profit of 40%% of their total cost? b. How many holow blocks do they need to sell every week to breakeven? c. Find their profit if they run at 80% efficiency.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 11RQ: What is die difference between accounting and economic profit?

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