Solution: How many units must be produced and sold per month to breakeven?

(Last Updated On: December 10, 2017)

How many units must be produced and sold per month to breakeven?

Problem Statement:

JRT Industries manufactures automatic voltage regulator at a labor cost of P85.00 per unit and material cost of P350.00 per unit. The fixed charges on the business are P15,000 per month and the variable costs are P20.00 per unit. If the automatic voltage regulators are sold to retailers at P580.00 each, how many units must be produced and sold per month to breakeven?

  • A. 104
  • B. 200
  • C. 120
  • D. 150

Problem Answer:

The number of units must be produced and sold per month to breakeven is 120 units.

Solution:

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Solution: How many units must be produced and sold per month to breakeven?
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