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The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its entire life. Its salvage value is Php

The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during

its entire life. Its salvage value is Php 50,000.00. Other costs are the ff.

Machine housing cost = Php 25,000/year

Electric consumption = Php 9/pipe

Maintenance = Php 7/pipe

Labor Cost = Php 35/pipe

Annual production is 2500 pes of pipe. Use sinking fund method of depreciation at i=12%

a. Fixed cost per piece of pipe

b. Variable cost per piece of pipe

c. Total production cost per piece of pipe image text in transcribed

= The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its entire life. Its salvage value is Php 50,000.00. Other costs are the ff. Machine housing cost = Php 25,000/year Electric consumption = Php 9/pipe Maintenance = Php 7/pipe Labor Cost = Php 35/pipe Annual production is 2500 pes of pipe. Use sinking fund method of depreciation at i=12% - = a. Fixed cost per piece of pipe b. Variable cost per piece of pipe c. Total production cost per piece of pipe

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