The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each, a. what is the break-even quantity per month? (Hint: for Break-even quantity, COST = REVENUE) b. how many units must be produced each month in order that the net profit equals the cost? c. what is the net profit if for a production of 4000 units per month, in pesos? (HInt: PROFIT = REVENUE - COS

The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each, a. what is the break-even quantity per month? (Hint: for Break-even quantity, COST = REVENUE) b. how many units must be produced each month in order that the net profit equals the cost? c. what is the net profit if for a production of 4000 units per month, in pesos? (HInt: PROFIT = REVENUE - COS

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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