Engineering Board Exam Reviewer · Engineering Management · medium
Making a part requires ₱50,000 of fixed tooling plus ₱20 per unit; buying it costs ₱30 per unit. At what quantity are the two options equal in cost?
- 2500 units
- 5000 units
- 1000 units
- 1667 units
Answer
B. 5000 units
Solution
50,000 + 20Q = 30Q Q = 50,000/10 = 5000 units. Above this, making is cheaper.
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