Cost Concepts and Economic Quantities — Engineering Board Exam Practice Questions

3 free engineering board exam reviewer questions on Cost Concepts and Economic Quantities (Engineering Economics), each with the correct answer and a worked solution.

1. A firm uses 12,000 units of an item per year. Each order costs P500 to place and holding costs P12 per unit per year. Using the economic…
2. The total cost of producing x units is TC=5,000+20x+0.05x2 pesos. Find the production level that minimizes the average cost per unit.
3. The price of a product is p=500-2x pesos when x units are sold per period. Fixed cost is P10,000 and the variable cost is P100 per unit…