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.

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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