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SW 5 Problem No. 26

XYZ Corporation manufactures bookcases that it sells for P60 each. It costs P35,000 per year to operate the plant including rent, depreciation, and salaries. It costs P50 to produce each bookcase. To avoid losses, the number of bookcases that must be sold each year is calculated by setting income equal to expenses and solving for x, which is 2,334 bookcases.

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2K views3 pages

SW 5 Problem No. 26

XYZ Corporation manufactures bookcases that it sells for P60 each. It costs P35,000 per year to operate the plant including rent, depreciation, and salaries. It costs P50 to produce each bookcase. To avoid losses, the number of bookcases that must be sold each year is calculated by setting income equal to expenses and solving for x, which is 2,334 bookcases.

Uploaded by

whee manobal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem No.

26

XYZ Corporation manufactures bookcases that it sells for P60.00 each. It cost XYZP35,000 per
year to operate its plant. The sum includes rent, depreciation charges on equipment, and salary payments.
If the cost to produce one bookcase is P50.00, how many cases must be sold each year for XYZ to avoid
taking a loss?

A. 2334 cases B. 539 cases C. 3500 cases D. 2333 cases

Given:

Income = 65x

Expenses = 50x + 35,000

Required:

Number of bookcases to be sold each year

Solution:

Let x = no. of bookcases that must be sold each year

To break even

Income = Expenses

65x = 50x + 35,000

x = 2,333.333333

Thus, x = 2334 bookcases

Problem No. 26

XYZ Corporation manufactures bookcases that it sells for P60.00 each. It cost XYZP35,000 per
year to operate its plant. The sum includes rent, depreciation charges on equipment, and salary payments.
If the cost to produce one bookcase is P50.00, how many cases must be sold each year for XYZ to avoid
taking a loss?

A. 2334 cases B. 539 cases C. 3500 cases D. 2333 cases

Given:
Income = 65x

Expenses = 50x + 35,000

Required:

Number of bookcases to be sold each year

Solution:

Let x = no. of bookcases that must be sold each year

To break even

Income = Expenses

65x = 50x + 35,000

x = 2,333.333333

Thus, x = 2334 bookcases

Problem No. 26

XYZ Corporation manufactures bookcases that it sells for P60.00 each. It cost XYZP35,000 per
year to operate its plant. The sum includes rent, depreciation charges on equipment, and salary payments.
If the cost to produce one bookcase is P50.00, how many cases must be sold each year for XYZ to avoid
taking a loss?

A. 2334 cases B. 539 cases C. 3500 cases D. 2333 cases

Given:

Income = 65x

Expenses = 50x + 35,000

Required:

Number of bookcases to be sold each year

Solution:
Let x = no. of bookcases that must be sold each year

To break even

Income = Expenses

65x = 50x + 35,000

x = 2,333.333333

Thus, x = 2334 bookcases

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