The monthly demand for ice cans being manufactured by Mr. Cruz is 3,500 pieces. With a manually operated guillotine, the unit cutting cost is P25.00. If an automatic hydraulic guillotine at a price of P305,000 is being used he will cut by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now? a. 62 mons. b. 12.20 mons. c. 10.76 mons. d. 16.12 mons.

The monthly demand for ice cans being manufactured by Mr. Cruz is 3,500 pieces. With a manually operated guillotine, the unit cutting cost is P25.00. If an automatic hydraulic guillotine at a price of P305,000 is being used he will cut by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now? a. 62 mons. b. 12.20 mons. c. 10.76 mons. d. 16.12 mons.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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