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

The annual maintenance cost of a machine is P70,000. If the cost of making a forging is P56 and its selling price is P125 per forged unit. Find the number of units to be forged to break even.

#### Problem Statement: EE Board October 1997

The annual maintenance cost of a machine is P70,000. If the cost of making a forging is P56 and its selling price is P125 per forged unit. Find the number of units to be forged to break even.

• A. 1015 units
• B. 985 units
• C. 1100 units
• D. 1000 units

The number of units to be forged to break even is 1015 units.

Solution:

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