Republic of the Philippines
PHINMA – Araullo University
Cabanatuan City
NAME: .
SECTION: .
ECO 017 – ENGINEERING ECONOMICS
QUIZ # 7
SET A
Write your final answer below the questions
1. A firm has the capacity to produce 1,500,000 units of product per year. At
present, it is able to produce and sell 600,000 units yearly at a total
income of Php 720,000. Annual fixed costs are Php 250,000 and the variable
costs per unit is Php 0.70. Determine the number of units that should be sold
annually to break even.
Ans: 500,000 units
2. Electric heat costs Php 5,000 to install in a three-bedroom house and Php
1,100 per year to operate. Solar heat costs Php 29,700 to install in a
three-bedroom house and Php 150 to operate. After how many years will the
total cost for solar heating and electric heating be the same for this home?
Ans: 26 yrs
3. A new fax machine was recently purchased for an office in Cabanatuan for
Php 492.20 including tax. If the tax rate in Cabanatuan is 7%, find the price
of the fax machine before taxes.
Ans: Php 460.00
4. Deposits are made to an account as indicated in the table below which
bears interest at the rate of 8% compounded annually. How much will there be
in the account at the end of the sixth year?
END OF YEAR DEPOSITS
1 Php 0
2 Php 500
3 Php 1,000
4 Php 1,500
5 Php 2,000
Ans: Php 5,849.56
