Solution: How many cases must be sold each year for XYZ Corporation to avoid taking a loss?

XYZ Corporation manufactures bookcases that sell for P65.00 each. It costs XYZ Corporation P35,000 per year to operate its plant. This sum includes rent, depreciation charges on equipment, and salary payments.

Problem Statement: ME Board April 1998

XYZ Corporation manufactures bookcases that sell for P65.00 each. It costs XYZ Corporation P35,000 per year to operate its plant. This sum includes rent, depreciation charges on equipment, and salary payments. If the cost to produce one bookcase is P50.00, how many cases must be sold each year for XYZ to avoid taking a loss?

• A. 2334
• B. 539
• C. 750
• D. 2333

The XYZ Corporation must sold each year a total of 2334 cases.

Solution:

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