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Certified Industrial Engineer (CIE) Examination

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3200 ice cans are needed each month, according to Mr. Davis' production. The cost of cutting one unit using a manual guillotine is P25.00. Mr. Davis was offered a P275,000.00 electrically controlled hydraulic guillotine, which reduces the cost of cutting units by 30%. How many months, ignoring the expense of money, will Mr. Davis need to purchase the equipment in order to recoup his investment?
Correct Answer:
12 months

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