1.0. 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 breakeven.

Given:

Formula:

Solution:

2.0. A manufacturer produces certain items at a labor cost P115 each, material
cost of P76 each and variable cost of P2.32 each. If the item has a unit price of
P600, how many nummber of units must be manufactured each month for the
manufacturer to break even if the monthly everhead is P428,000.

Given:

Formula:

Solution:
3.0. JRT industries manufactures automatic voltage regulators 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 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?

Given:

Formula:

Solution:

4.0. Steel drum manufactuurer incurs a yearly fixed operating cost $ 200,000.
Each drum manufactured cost $ 160 to produce and sells $ 200. What is the
manufacturer’s break-even sales volume in drums per year?

Given:

Formula:

Solution:
5.0. The annual maintenance cost osf a machine is P 70,000. If the cost of making
a forging is P56 and its selling price is P 125 per forged unit. Find the number of
units to be forged to break-even.

Given:

Formula:

Solution:

6.0. XYZ Corpporation Manufactures bookcases that sells for P65.00. 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 bookcases is P50.00, how many cases must be sold each year for XYZ to
avoid taking loss?

Given:

Formula:

Solution:
7.0. A company with manufactures electric motor has a production capacity of
200 motors a month. The variable costs are P 150.00 per motor. The average
selling price of the motors is P275.00. Fixed cost of the company amount to
P20,000 per month which includes taxes. The number of motors that must be
sold each month to break-even is closed to:

Given:

Formula:

Solution:

8.0. Compute for the number of locks that an ice plant must be able to sell month
to break even based on the following data:

Cost of electrical per block - P20.00

Tax to be paid per block
Real Estate Tax
Salaries and Wages
Others
Selling price of ice
- P2.00
- P 3,500.00 per month
- P25,000.00 per month
- P 12,000.00 per month
- P 55.00 per block

Formula:

Solution: