A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000 after 500,000 copies. The annual cost of renting the space for the business is P80,000, power cost per copy is P1.50, and maintenance and paper cost per copy is P5.00. The expected annual production of the machine is 100,000 copies. Annual interest is 12%. Determine: a. The annual operation and maintenace cost of the machine b. The annual depreciation of the machine. c. Production cost per copy. Show your solution
A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000 after 500,000 copies. The annual cost of renting the space for the business is P80,000, power cost per copy is P1.50, and maintenance and paper cost per copy is P5.00. The expected annual production of the machine is 100,000 copies. Annual interest is 12%. Determine: a. The annual operation and maintenace cost of the machine b. The annual depreciation of the machine. c. Production cost per copy. Show your solution
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000 after 500,000 copies. The annual cost of renting the space for the business is P80,000, power cost per copy is P1.50, and maintenance and paper cost per copy is P5.00. The expected annual production of the machine is 100,000 copies. Annual interest is 12%. Determine:
a. The annual operation and maintenace cost of the machine
b. The annual
c. Production cost per copy.
Show your solution
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