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Compute for the benefit ratio of the following projects. Project cost 5,000,000 2,000,000 1,000,000 20 years 10% Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O. 1.07 O d. 1.02

Compute for the benefit ratio of the following projects. Project cost 5,000,000 2,000,000 1,000,000 20 years 10% Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O. 1.07 O d. 1.02

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer the items with complete solution Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate 5,000,000 2,000,000 1,000,000 20 years 10% Оа. 1.20 Ob. 1.70 O. 1.07 Od. 1.02 1. A certain project with annual benefit of P 50,000 at the end of each year for a period of 6 years. Assuming money is 10% and benefit ratio is 1.02, compute the cost of the project. O a. P642,986.00 O b. P246,986.00 O. P426,986.00 O d. P426,968.00 2. A furniture manufacturer has an annual overhead cost of P300,000.00 plus 15% of the sales in pesos. Labor cost of P40.00 per set and the materials cost P25.00 he has a maximum capacity of 1,500 sets per month but expects to produce only 9,000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even? O a. P136.00 оъ. Р116.00 O. P126.00 O d. P161.00 3.
Transcribed Image Text:Answer the items with complete solution Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate 5,000,000 2,000,000 1,000,000 20 years 10% Оа. 1.20 Ob. 1.70 O. 1.07 Od. 1.02 1. A certain project with annual benefit of P 50,000 at the end of each year for a period of 6 years. Assuming money is 10% and benefit ratio is 1.02, compute the cost of the project. O a. P642,986.00 O b. P246,986.00 O. P426,986.00 O d. P426,968.00 2. A furniture manufacturer has an annual overhead cost of P300,000.00 plus 15% of the sales in pesos. Labor cost of P40.00 per set and the materials cost P25.00 he has a maximum capacity of 1,500 sets per month but expects to produce only 9,000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even? O a. P136.00 оъ. Р116.00 O. P126.00 O d. P161.00 3.
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