GEAS 24

A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment and the minimum pay out period if the annual profit is P2,500,000.

• 20.38% ; 2.68

• 20.83% ; 2.86

• 23.80% ; 6.28

• 23.08% ; 6.66

A 500kw electric lighting plant cost P95 per kw installed. Fixed charges is 14%, operating cost is P0.013 per kw-hr. The plant averages 150kw for 5000 hour of the year, 420 kw for 1000 hour and 20kw for the remainder. What is the unit cost of production of electric energy?

• P0.0184

• P0.1084

• P0.1840

• P0.8104

A mechanical engineer who was awarded a P450,000 contract to install the machineries of an oil mill failed to finish the work on time. As provided for in the contract, he has to pay a daily penalty equivalent to one fourth of one percent per day for the next ten days and one percent per day for every day thereafter. If the total penalty was P60750, how many days was the completion of the contract delayed?

• 30 days

• 22 days

• 26 days

• 24 days

By selling balut at P5 per dozen, a vendor gains 20%. The cost of the eggs rises by 12.5%. If he sells at the same price as before, find his new gain %.

• 5.5%

• 6.6%

• 7.7%

• 7.6%

In a certain department store, the monthly salary of a saleslady is partly constant and partly varies as the value of her sales for the month. When the value of her sales for the month is P10,000, her salary for that month is P900, when her monthly sales goes up to P12,000, her monthly salary goes up to P1,000. What must be the value of her sales for the month so that her salary for that month would be P2,000?

• P32,000

• P35,000

• P30,000

• P40,000

An equipment installation job in the completion stage can be completed in 50 days of 8 hour day work, with 50 men working. With the contract expiring in 40 days, the mechanical engineer contractor decided to add 15 men on the job, overtime not being permitted. If the liquidated damages is P5,00 per day of delay, and the men are paid P150 per day, how much money would he save with the additional workers?

• P44570

• P44750

• P47540

• P45407

Jojo bought a second hand Betamax VCR and then sold it to Rudy at a profit of 40%; Rudy then sold the VCR to Noel at a profit of 20%. If Noel paid P2,856 more than it cost Jojo, how much did Jojo pay for the unit?

• P2200

• P4400

• P2400

• P4200

Dalisay Corporation’s gross margin is 45% of sales. Operating expenses such as sales and administration are 15% of sales. Dalisay is in 40% tax bracket. What percent of sales is their profit after taxes?

• 18%

• 5%

• 24%

• 0%

A manufacturer of sports equipment produces tennis rackets for which there is a demand of 200 per month. The production setup cost for each lot of racket is O300. IN addition, the inventory carrying cost for each racket is P24 per year. Using the Economic Order Quantity (EQQ) model, which is the best production batch size fro the rackets?

• 71 units

• 173 units

• 245 units

• 346 units

A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

• 1 hour

• 0.75 hours

• 3 hours

• 2.25 hours