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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Price-earnings ratio
Current ratio
Gross margin

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Engineering Economics
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

1037
1033
1043
1053

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Engineering Economics
First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

0.21
0.19
0.18
0.2

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,222.39
P 6,292.93
P 6,922.93
P 6,999.39

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Engineering Economics
The ability to convert assets to cash quickly is known as ______.

Insolvency
Leverage
Liquidity
Solvency

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Engineering Economics
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years?

P 231.56
P 236.20
P 212.90
P 222.67

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