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ENGINEERING ECONOMICS

SEATWORK NO. 3
NOVEMBER 29, 2022
PROBLEM NO. 1:
The cost of producing a certain commodity consists of P45.00 per unit for
the labor and material cost and P15.00 per unit other variable cost. The
fixed cost per month amounts to P450,000. If the commodity is sold at
P250.00 each, what is the break-even quantity?

PROBLEM NO. 2:
The cost of producing a commodity consists of P35 per unit of labor, P42
per unit of materials, and P10 per unit 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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