Company X has a fixed expense of P1.5M monthly and each unit is produced at P20

Company X has a fixed expense of P1.5M monthly and each unit is produced at P20. Company Y has a fixed expense of P500,000 per month and can produce the same unit at P60. At what number of units of monthly production will company X have the same overall cost as company Y?

A. 20,000 C. 30,000
B. 25,000 D. 15,000

Solution