What is the break-even sales volume if two out of every 10 units produced is defective and is rejected with only full recovery materials?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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An item which can be sold for P63.00 per unit wholesale is being produced with the following cost data; labor cost, P10 per unit; material cost, P15.00 per unit; fixed charges, P10,000.00; variable cost, P8.00 per unit. What is the break-even sales volume if two out of every 10 units produced is defective and is rejected with only full recovery materials?

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