ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Answer the items with complete solution It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another | alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years O. 23 years Od. 25 years 1. A certain firm produces certain products at a labor cost of P500.00 per unit, variable and material cost of P420.00. If the selling price is P1,500.00 per unit, how many units must be produced each month to break even assuming that the fixed monthly cost if P600,000.00. O a 1.035 units O b. 1.530 units O. 1,305 units 2. Od. 1,053 units A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even? O a P6,439,800 Ob P6,493,800 OC P6,349,800 Od. P6,349,080 3.
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Transcribed Image Text:Answer the items with complete solution It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another | alternative is to manufacture the product by an automated process that costs P15,000.00 with a PO.50 per unit cost. With an annual production rate of 5000 units, how long will take to reach the break- even point? O a 28 years Ob 18 years O. 23 years Od. 25 years 1. A certain firm produces certain products at a labor cost of P500.00 per unit, variable and material cost of P420.00. If the selling price is P1,500.00 per unit, how many units must be produced each month to break even assuming that the fixed monthly cost if P600,000.00. O a 1.035 units O b. 1.530 units O. 1,305 units 2. Od. 1,053 units A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even? O a P6,439,800 Ob P6,493,800 OC P6,349,800 Od. P6,349,080 3.
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