A small shop in Bulacan fabricates threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to breakeven?
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- The ABC company is considering constructing a plant to manufacture a proposed new product. The land costs P15,000,000, the building costs P30,000,000, the equipment costs P12,500,000, and P5,000,000 working capital is required. At the end of 12 years, the land can be sold for P25,000,000, the building for P12,000,000, the equipment forP250,000 and all of the working capital recovered. The annual disbursements for labor, materials, and all other expenses are estimated to cost P23,750,000. If the company requires a minimum return of 25%, what should be the minimum annual sales for 12 years to justify the investment?Determine the Average Cost if the total cost of the production is $150 and the total numbers of production unit is $100.A light manufacturing firm has set up a project for develop- ing a new machine for one of its production lines. The most likely estimated cost of the project itself is $1,000,000, but the most optimistic estimate is $900,000 while the pessimists predict a project cost of $1,200,000. The real problem is that even if the project costs are within those limits, if the project itself plus its implementation costs exceed $1,425,000, the project will not meet the firm’s NPV hurdle. There are four cost categories involved in adding the prospective new machine to the production line: (1) engineering labor cost, (2) nonengineering labor cost, (3) assorted material cost, and (4) production line downtime cost. The engineering labor requirement has been estimated to be 600 hours, plus or minus 15 percent at a cost of $80 per hour. The nonengineering labor requirement is esti- mated to be 1,500 hours, but could be as low as 1,200 hours or as high as 2,200 hours at a cost of $35 per hour. Assorted…
- Engineer Layla purchased a dump truck worth P850,000. She added P50,000for the delivery and other expenses. The said equipment is expected to be useful for 10 years. At the end of its life, it will cost x% of the first cost. Using SLM, its book value at year 5 is P517,500. What is the value of x?G: The client hires you to go to and personally source materials from China for 5 days. It was agreed that the client pays you on a per diem basis and pegged the fees at Php 6,000/day. How much is your total RPF for rendering this type of service?Subject: Engineering Economy Topic: Selections in the Present Economy The monthly demand for ice cans being manufactured by Mr. Cruz is 3,200 pieces. With a manually operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Cruz at a price of P275,000 and which will cut by 30% the unit cutting Disregarding the cost of money, how many months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now?
- A plant to provide the company’s present needs can be constructed for P2,800,000 with annual operating disbursements of P600,000. It is expected that at the end of 5 years the production requirements could be doubled, which will necessitate the addition of an extension costing P2,400,000. The disbursement after 5 years will likewise double. A plan to provide the entire expected capacity can be constructed for P4,000,000 and its operating disbursement will be P640,000 when operating on half capacity (for the first 5 years) and P900,000 on full capacity. The plants are predicted to have indeterminately long life. The required rate of return is 20%. What would you recommend?an equipment costing P 270,000 has an estimated scrap value of P 25000 at the end of its economic life of 11 years. Using Double-Declining Balance Method, what is the book value after 7 years?I need all the parts otherwise skip, it's my first question on bartleby if I liked I'll purchase more so pls do it nicely so that I can buy again
- An ironworker works 10hr/day, 6 days/week. A base wage of OMR20.97/hr is paid for all straight-time work, 8 hr/day, 5 day/week. An overtime rate of one time and one half is paid for all hours over 8 hr/day, Saturday through Wednesday, and double time is paid for all Thursday work. The social security tax is 7.65% and the unemployment tax is 3% of actual wages. The rate for worker’s compensation insurance is OMR12.5 per OMR100 of base wage. Calculate the average hourly cost to hire the ironworker.As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Show that the same selection is made for the following methods: c. EUAC method Alternative A B Capital investment ALTERNATIVE A $272,000 ALTERNATIVE B $346,000 Annual expenses ALTERNATIVE A $28,800 1 ALTERNATIVE B $9,300 Useful life (years) ALTERNATIVE A =6 ALTERNATIVE B =9 Salvage value ALTERNATIVE A $ 25,000 ALTERNATIVE B $40,000 Answer letter c only. Give thee EUAC methodA certain machine cost P43,013 and has a life of 10 years and salvage value of P5,623. The production outputs and the working hours of this machine per year are as follows: 1st year are 1,754 units and 12,461 hours; 2nd year are 2,203 units and 15,913 hours; 3rd year are 3,151 units and 19,632 hours and 4th year are 3,681 units and 21,946 hours. The capacity of the machine is 50,000 units and 200,000 hours. Assume that the units produced are of uniform quality. Determine the following: a. Depreciation charged on the 2nd year using both SOM and WHM. b. Book value after 4 years using SOM. c. Book value after 3 years using WHM.