Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a × (n - 1) b
a + (n - 1) b
a - (n - 1) b
a + (n + 1) b

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Engineering Economics
The 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?

13 months
11 months
10 months
12 months

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Engineering Economics
Pick up the correct statement regarding financial statement analysis from the following.

The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time
The income statement is the summary of revenues and expenses of a firm over a particular period of time
Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
All listed here

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Engineering Economics
Which one of the following definitions is correct?

All of these
The ratio of total debt to share holder's equity is called 'debt ratio'
The ratio debt-to-total assets is called Debt-to-total assets ratio
The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period is called interest coverage ratio

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Engineering Economics
A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

2890
2632
2712
2.59

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