Engineering Economics
Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

Fixed percentage of gross income or 50% of the net taxable income
Fixed percentage of gross income or the net taxable income
50% of the fixed percentage of gross income or the net taxable income
50% of the fixed percentage of gross income or 50% of the net taxable income

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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?

2,632
2,712
2.590
2,890

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Engineering Economics
In case of bankruptcy of a partnership,

The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
The partners nay sell stock to generate additional capital
The partners are not liable for the liabilities of the partnership
The partners personal assets are attached to the debt of the partnership

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