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Discussion :: Engineering Economics

  1. 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?

  2. A.

     2.590

    B.

     2,632

    C.

     2,712

    D.

     2,890

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    Answer : Option B

    Explanation :

    Explanation Not Provided


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