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Please answer :-).This problem is for those people who are taking engimeering economy: The cost of producing a small transistor radio set consists of Php 23.00 for labor and Php 37.00 for materials. The fixed charges in operating the plant are Php 100,000 per month. The variable cost is Php 1.00 per set. The radio set can be sold for Php 75.00 each. Determine how many sets must be produced per month to break-even.
Break-even formula: "Total cost= total revenue". (Total revenue= 75 × N) while (Total cost= 100,000 + [(23+37+1)×N]. So the equation now would be "100,000+ [(23+37+1)×N]= 75 × N". Solving for N... 14N=100000... N=7142.9 sets~~ 7143 sets. Therefore, 7143 sets must be produced per month to break-even...
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