Problem Statement: Engineering Economics
Cost of the Machine Problem SolvingThe monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?
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A. 10 months
B. 11 months
C. 12 months
D. 13 months
Problem Answer:
The number of months that Mr. Camus will be able to recover the cost of the machine if he decides to buy now is equal to 12 months.
View Solution:
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