A local company assembles radio transmitters and produces certain units per month. This costs 825.64 pesos per unit. Each unit is sold at Php 1301.77. If the fixed costs are at Php 31403 a month, determine the number of units that must be produced annually to achieve break-even point.
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- In manufacturing a kerosene stove, it is necessary to make two half-inch holes in the metal. If these are drilled with the help of a jig, each hole will require one minute. The jig will cost P40.00. The drill press operator receives P1.10 per hour. The holes could be made also on a punch press at the rate of 2 holes each for 5seconds. A die would be required at a cost of P80.00. The punch operator will receive P0.90 per hour. If 1,000 stoves are to be produced & the jig/die will have no scrap value, which method will you recommend on the bases of cost and on completion of work?On July 1, 2012, Ms. C will need Php1, 000. Assume that the annual effective interest rate equals 0.0625. How much would Ms. C have to deposit on October 1, 2008 in order to be able to withdraw the Php1, 000 from the account on July 1, 2012?The annual maintenance cost of a machine shop is P56,000. If the cost of making a forging is P60.00 per unit and its selling price is twice as the cost of making a forging, find the number of units to be forged to break-even.
- In a cold storage plant, it is desired to determine whether to use insulation of two inches or three inches thick in insulating the walls of the cold storage warehouse.Heat absorbed through the walls without insulation would cost Php 96 per year per square meter. Two-inch insulation will cost Php 30.40 per square meter and will cut out 89% of the loss. Three-inch insulation will cut out 92% of the loss and will cost Php 65 per square meter. Using a life of 15 years for the insulation with no salvage value and a minimum attractive rate of return of 8%, what thickness of insulation should be used?A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $42,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $121,000 per year. The company’s MARR is 46% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is ____ %.A new mechanical engineer produces a certain design at a labor cost of P16.2 per piece, material cost of P38.5 per piece and variable cost of P7.4 per piece. The fixed charges on the business is P100,000 per month. If he sells a finish product at P95 each, how many pieces must be manufactured in each month to breakeven?
- The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for materials. The fixed charges in operating the plants are P100,000 per month. The variable cost is P1.00 per set. The radio set can be sold for P75.00 each. Determine how many sets must be produced per month to break even.For the operation of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Each completed part can be sold at Php 7 per part. Operation 1 produces 2,000 parts per hour. After each hour, the tooling must be adjusted by the machine operator. The adjustment takes 20 minutes. The machine operator for Operation 1 is paid Php350 per hour. Operation 2 produces 1,300 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. The adjustment takes 30 minutes. The machine operator for Operation 2 is paid Php 192.5 per hour. Assume an 8-hour work day. Further assume all parts produced can be sold. Should operation 1 or Operation 2 be recommended?One way to recover invested capital with interest is to collect the principal P over n years as P∕n and also collect the interest on the unrecovered balance. Assume you borrowed $6000 at 10% per year interest with a repayment period of 3 years to purchase a new network controller for your company. (a) Use the method above to determine the amount of each of the three payments. (b) Determine the amount of each payment if they are all equal.
- A company sells two products, A and B. The sale mix consists of acomposite unit of 2 units of A for every 5 units of Y (2.5) Fixed cost arePhp247,500. The unit contribution margins for A and B are, Php12.50 andPhp6.00, respectively. Considering the company as a whole, the numberof composite units to breakeven isTom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000 and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000 customers at a price of Php300/customer. Tom's total fixed cost isIn marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a drilling rate of 15 cm/nmin, produces 30 cubic meters of block per month and consumes 80 liters of diesel fuel for compressor drive, per rock drill per cubic meter produced utilizing 1 worker per drill. A modern equipment quarry bar mounted rock drill is being offered for P180,000 per unit and has a drilling rate of 65 cm/min that will produce 75 cubic meters of block per month, ut consumes135 litersof diesel fuel for the compressor drive per cubic meters of block produced, utilizing 2 workers per quarry bar drill. Considerdiesel fuel at P6.55per liter at quarries, worker earning P375 per day, 22 days per month, 12 years life of both drills with 13% salvage value, 3% annual tax rate, P300 per cubic meter monthly for other expenses and sold at P1,500per cubi meter. Would you recommend the purchase of the new equipment? What is the pay-out period of the better drill? PP for HAND DRILL: ___years…