The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its entire life. Its salvage value is Php 50,000.00. Other costs are the ff. Machine housing cost = Php 25,000/year Electric consumption Php 9/pipe Maintenance = Php 7/pipe Labor Cost = Php 35/pipe Annual production is 2500 pes of pipe. Use sinking fund method of depreciation at i=12% Fixed cost per piece of pipe? b. Variable cost per piece of pipe? a. Total production cost per piece of pipe? С.

ENGR.ECONOMIC ANALYSIS
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The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its
entire life. Its salvage value is Php 50,000.00. Other costs are the ff.
Machine housing cost = Php 25,000/year
Electric consumption Php 9/pipe
Maintenance = Php 7/pipe
Labor Cost = Php 35/pipe
Annual production is 2500 pes of pipe. Use sinking fund method of depreciation at i=12%
Fixed cost per piece of pipe?
b. Variable cost per piece of pipe?
a.
c. Total production cost per piece of pipe?
Transcribed Image Text:The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its entire life. Its salvage value is Php 50,000.00. Other costs are the ff. Machine housing cost = Php 25,000/year Electric consumption Php 9/pipe Maintenance = Php 7/pipe Labor Cost = Php 35/pipe Annual production is 2500 pes of pipe. Use sinking fund method of depreciation at i=12% Fixed cost per piece of pipe? b. Variable cost per piece of pipe? a. c. Total production cost per piece of pipe?
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