Solution: Find the number of units to be forged to break-even.

The annual maintenance cost of a machine shop is P69,994. If the cost of making a forging is P56 per unit and its selling price is P135 per forged unit, find the number of units to be forged to break-even.

Find the number of units to be forged to break-even.

Problem Statement: ME Board October 1998

The annual maintenance cost of a machine shop is P69,994. If the cost of making a forging is P56 per unit and its selling price is P135 per forged unit, find the number of units to be forged to break-even.

  • A. 886 units
  • B. 885 units
  • C. 688 units
  • D. 668 units

Problem Answer:

The number of units to be forged to break-even is 886 units.

Solution:

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