A young mechanical engineer is considering establishing his own small comp nvestment of P400,000 will be required which will be recovered in 15 years. estimated that sales will be P800,000 per year and that operating expenses Follows: Materials P160,000 per year Labor P280,000 per year Overhead P40,000 +10% of sales per year Selling expense P60,000 The man will give you his regular job paying P216,000 per year and devote f the operation of the business; this will result in decreasing labor cost by P40, vear matorial cost hy P28.000 per vear and overbead cost by P32. 000 per v

A young mechanical engineer is considering establishing his own small comp nvestment of P400,000 will be required which will be recovered in 15 years. estimated that sales will be P800,000 per year and that operating expenses Follows: Materials P160,000 per year Labor P280,000 per year Overhead P40,000 +10% of sales per year Selling expense P60,000 The man will give you his regular job paying P216,000 per year and devote f the operation of the business; this will result in decreasing labor cost by P40, vear matorial cost hy P28.000 per vear and overbead cost by P32. 000 per v

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 13P

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