Complete Solution needed.A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss) BREAK-EVEN ANALYSISa point in economic study where the sales volume is just enough pay the costsalso referred asof production. Hence no loss, no gain.Psales (sales = selling price x mitshuсP = R-C₂Profit= Revenue - CostCost = Fixed Cost + Variable CostsFC+VC(+) profit = gain(-) profit = lossprofit = 0 = break-even=WHEN COMPARING TWO ALTERNATIVES:Cost of Alternative 1 = Cost of Alternative 2f1 (x) = f2 (x)BREAK-EVEN ANALYSIS

The break-even point (BEP) in economics, business—and particularly cost accounting—is the point at…

A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss)

A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss)

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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