Engineering Board Exam Reviewer · Break-Even Analysis · medium
Machine A has fixed costs of P100,000 and a variable cost of P8 per unit. Machine B has fixed costs of P160,000 and a variable cost of P5 per unit. At what volume are the total costs equal?
- 20,000 units
- 60,000 units
- 12,500 units
- 5,000 units
Answer
A. 20,000 units
Solution
100,000+8x=160,000+5x 3x=60,000 x=20,000 units.
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