The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and P10 per unit for other variable costs. Cost of utilities and rents amounts to P850,000 per month. If the commodity is sold at P310 each; (a) What is the profit/loss if 3369 units were sold? (b) How many pieces must be produced each month for the manufacturer to breakeven?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
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PROBLEM NO. 1:
The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and P10 per unit for other variable costs. Cost
of utilities and rents amounts to P850,000 per month. If the commodity is sold at P310 each;
(a) What is the profit/loss if 3369 units were sold?
(b) How many pieces must be produced each month for the manufacturer to breakeven?
Transcribed Image Text:PROBLEM NO. 1: The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and P10 per unit for other variable costs. Cost of utilities and rents amounts to P850,000 per month. If the commodity is sold at P310 each; (a) What is the profit/loss if 3369 units were sold? (b) How many pieces must be produced each month for the manufacturer to breakeven?
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