The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now? · A. 10 months · B. 11 months · C. 12 months · D. 13 months

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The monthly demand for ice cans being manufactured by Mr. Camus is 3200
pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically
operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and
which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many
months will Mr. Camus be able to recover the cost of the machine if he decides to buy
now?
· A. 10 months
· B. 11 months
· C. 12 months
· D. 13 months

 

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