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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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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