Civil Engineering Exams (Civil Math) – Flashcard Mode

A machine costing P 1, 000, 000 is expected to produce 10, 000 units of steel pipe during its entire life before being replaced. At the end of its life it will have a scrap value of P50, 000. The cost of housing the machine is P25, 000 a year. The power consumption per unit is P9 and the maintenance of the machine per unit will be P7. If depreciation if the Sinking Fund Method at 12% and the annual production is 2, 500 units. What it the total production cost per unit?