A company manufactures 1,000,000 units of a product yearly. A new design of the product will reduce materials cost by 12% but will increase processing cost by 2%. If material cost is 1.20Php/unit and processing will cost 0.40Php/unit, how much does the company saves yearly for making changes in the equipment? a. 130,000Php b. 136,000Php c. 137,500Php d. 140,000Php e. None of the above
A company manufactures 1,000,000 units of a product yearly. A new design of the product will reduce materials cost by 12% but will increase processing cost by 2%. If material cost is 1.20Php/unit and processing will cost 0.40Php/unit, how much does the company saves yearly for making changes in the equipment? a. 130,000Php b. 136,000Php c. 137,500Php d. 140,000Php e. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. A company manufactures 1,000,000 units of a product yearly. A new design of the product will reduce
materials cost by 12% but will increase
processing will cost 0.40Php/unit, how much does the company saves yearly for making changes in
the equipment?
a. 130,000Php
b. 136,000Php
c. 137,500Php
d. 140,000Php
e. None of the above
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