A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000 A. 1,033 B. 1,037 C. 1,043 D. 1,053

The correct answer is A. 1,033.

To break even, the total revenue must equal the total cost. The total cost is the sum of the fixed cost and the variable cost. The fixed cost is P428,000, and the variable cost is P115 + P76 + P2.32 = P203.32 per unit. Therefore, the total cost per unit is P203.32 + P428,000/x = P600, where x is the number of units that must be manufactured each month to break even. Solving for x, we get x = 1,033.

Option B is incorrect because it is the total cost per unit. Option C is incorrect because it is the total variable cost per unit. Option D is incorrect because it is the total fixed cost per unit.