ENGINEERING ECONOMICS QUIZ

A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000

1043

1053

1033

1037

TRUE ANSWER : ?
YOUR ANSWER : ?

What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

Rate of return

Interest rate

Return of investment

Yield

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YOUR ANSWER : ?

Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.

0.1219

0.1203

0.1154

0.1029

TRUE ANSWER : ?
YOUR ANSWER : ?

The declining balance method is also known as ______.

Double percentage method

Constant percentage method

Modified SYD method

Modified sinking fund method

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YOUR ANSWER : ?

If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

(ni - 1)

None of these

(1 + ni)

ni

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YOUR ANSWER : ?

A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,500.57

P 2,544.45

P 2,504.57

P 2,540.56

TRUE ANSWER : ?
YOUR ANSWER : ?

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?

11 months

12 months

13 months

10 months

TRUE ANSWER : ?
YOUR ANSWER : ?

The interest calculated on the basis of 365 days a year, is known as:

None of these

Interest

Exact simple interest

Ordinary simple interest

TRUE ANSWER : ?
YOUR ANSWER : ?

Which is NOT an essential element of an ordinary annuity?

Compound interest is paid on all amounts in the annuity.

The first payment is made at the beginning of the first period.

The payments are made at equal interval of time.

The amounts of all payments are equal.

TRUE ANSWER : ?
YOUR ANSWER : ?

In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

P 20,113.57

P 18,289.05

P 16,892.34

P 15,030.03

TRUE ANSWER : ?
YOUR ANSWER : ?

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