A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even ?

Related Mcqs:

“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the______________?

A. Law of diminishing return B. Law of supply C. Law of demand D. Law of supply and demand...

What market situation exists where there are few sellers and few buyers ?

A. Oligopoly B. Oligopsony C. Bilateral oligopoly D. Bilateral Oligopsony...

The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are below.

1. The construction of the building now to cost P 400,000 2. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000. By how much is proposal B more economical than proposal A if interest rate is 20% and … The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are...

What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?

A. Opportunity cost B. Ghost cost C. Horizon cost D. Null cost...

The financial health of the company is measured in terms of______________?

A. Liquidity B. Solvency C. Relative risk D. All of the above...