A certain operation is now performed by hand, the labor cost per unit is P 54 and annual fixed charge for tool use is P 10,000. A machine that is considered for this job will coast P 240,000, and have a salvage value of P 10,000 at
A certain operation is now performed by hand, the labor cost per unit is P 54 and annual fixed charge for tool use is P 10,000. A machine that is considered for this job will coast P 240,000, and have a salvage value of P 10,000 at
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A certain operation is now performed by hand, the labor cost per unit is P 54 and annual fixed charge for tool use is P 10,000. A machine that is considered for this job will coast P 240,000, and have a salvage value of P 10,000 at the end of its 6 - year life. With it labor cost is P 22 per unit and annual fixed charge is P 20,000. At what number of units per year, at zero interest, will the cost of the two methods break even?
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