Solution: How many number of units must be manufactured each month to break even?

A manufacturer produces certain items at a labor cost of P115 each, material cost of P76 each and a variable cost of P2.32 each. If the item has a unit price of P600,

How many number of units must be manufactured each month to break even?

Problem Statement: CE Board May 1998

A manufacturer produces certain items at a labor cost of P115 each, material cost of P76 each and a variable cost of P2.32 each. If the item has a unit price of P600, how many number of units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000?

  • A. 1053
  • B. 1138
  • C. 946
  • D. 1232

Problem Answer:

The number of units must be manufactured each month to break even is 1053 units.

Solution:

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