ADAMSON UNIVERSITY

COLLEGE OF ENGINEERING
INDUSTRIAL ENGINEERING DEPARTMENT

PRELIM EXAM: ENGINEERING ECONOMY SCORE

Instructions: Write answers legibly on a clean paper and take a picture or scan it. Please
attach the document or the answer sheet link (Google Docs) directly to your Blackboard.
Don’t forget to grant your professor direct access to the said document. Good luck & Keep
Safe Always.

Name: de Guzman, Victoria Mae T. Date: Sept 23, 2021

Section: 56056
I. Problem Solving: Shows solutions (Manual calculations)

A.) The annual fixed costs for a plant are $200,000, and the variable costs are $240,000 at 70%
utilization of available capacity, with net sales of $380,000. What is the breakeven point in units
of production if the selling price per unit is $38?

ENGINEERING ECONOMY Page 1 of 3

 ADAMSON UNIVERSITY
COLLEGE OF ENGINEERING
INDUSTRIAL ENGINEERING DEPARTMENT

PRELIM EXAM: ENGINEERING ECONOMY SCORE

B.) An industrial engineer has designed two alternative methods for accomplishing a production
job. Both methods involve the acquisition of the same working place and other capital equipment
to be used for this job only.

Method A calls for a crew consisting of three men each costing P30.00 per hour. This method
will result in the production of 10 units per hour of which two will be reject.

Method B calls for a crew of two men each costing P35.00 per hour and should result in the
production of eight units per hour of which one will be reject.

The cost of the direct material lost in each reject is P20.00. If a certain total number of units is
to be produced, find which method is economical?

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 ADAMSON UNIVERSITY
COLLEGE OF ENGINEERING
INDUSTRIAL ENGINEERING DEPARTMENT

PRELIM EXAM: ENGINEERING ECONOMY SCORE

C.) If you borrow cash from your neighbor at 12% simple interest, determine the present worth
of ₱20,000 which is due at the end of 9 months.

Don’t be afraid of failure…There’ll always be a second chance..

~ Sir Bren

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