EIM 413: Test 1

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Engineering Economic Analysis and Cost Estimation

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Engineering and Technology

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Industrial and Manufacturing Engineering

EIM413

19 September - 25 September

EIM 413:

Ndoro Limited has been approached by a new customer with an offer to purchase 2317.9 units of Ndoro
Limiteds product at a price of $15.40 each. Dealing with the new customer would have no effect on
existing sales. Ndoro Limited has a capacity of 15000 units, and plans to produce and sell 10000 units in
the coming year. Other customers buy Ndoro's product for $19.0.The cost per unit in dollars is as follows:
Direct material = $2.2
Direct labour = $2.4
Variable overhead = $1.0
Fixed overhead = $3.0
Analyse and determine the benefit/loss to Ndoro Limited executing the new customer's order.
Answer: 22715.42
The correct answer is: 22715.42

Question 8

From the following details, calculate the breakeven point.

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Variable cost per units $4.1

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Fixed expenses $150000

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Selling price per unit $11.8

Answer: 19480.52
The correct answer is: 19480.52

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9/26/2016 9:29 PM

EIM 413: Test 1

2 of 2

http://www.hit.ac.zw/elearning/mod/quiz/review.php?attempt=3079&page=3

EIM413

9/26/2016 9:29 PM