2-17 Consider the accompanying breakeven graph for an investment, and answer the following questions. $40 $35 $30 Total Revenue $25 $20- Total Cost $15 $10 -- $5 $0 0. 250 500 750 1000 1250 1500 1750 Output (units/year) (a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the "breakeven" level of x? :11 ou hove a Dollars (X104)

2-17 Consider the accompanying breakeven graph for an investment, and answer the following questions. $40 $35 $30 Total Revenue $25 $20- Total Cost $15 $10 -- $5 $0 0. 250 500 750 1000 1250 1500 1750 Output (units/year) (a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the "breakeven" level of x? :11 ou hove a Dollars (X104)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years D E -70,000 -15,000 10,000 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. -60,000 -12,000 8,000 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- 8008 and the future worth of machine E is $- 20280 The machine selected based on the future worth analysis is
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Problem 3-18 (Algo) New car sales for a dealer in Cook County, Illinois, for the past year are shown in the following table, along with monthly indexes (seasonal relatives), which are supplied to the dealer by the regional distributor. Units Units Sold 767 787 817 817 Month Sold Index 0.70 0.80 Month Index 0.90 1.10 1.20 Jan. 643 Jul. Aug. Sept. Feb. 653 Mar. 638 0.60 Apr. May Jun. 738 0.94 Oct. 1.20 743 843 0.89 Nov. 827 1.20 1.00 Dec. 787 1.25 Click here for the Excel Data File b. Deseasonalize car sales. (Round your answers to the nearest whole number.) Month Deseasonalized Month Deseasonalized Jan. Jul. Feb. Aug. Mar. Sep Apr. Oc. May Jun. Nov. Dec.
$3,000 $2,750 $2,500 $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 0 $660 $240 1 ATC $120 2 $2,620 $60 3 $1,980 $120 4 $1,608 $1,380 $240 $480 $1,251 $840 5 6 7 Output Produced (q) $1,200 8 $1,200 $1,680 $2,280 9 $1,200 10 $1,342 $1,248 MC AVC 11 12 Consider the information in the file named Cost Functions of the Firm (also presented above). Total cost of producing 3 units equals dollars.
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A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a one-day tour. Records show $360,000 in fixed costs per season, incremental costs of $5 per customer, and an average daily occupancy of 80%. The number of days of operation necessary each season to break even is closest to which value? (a) 50 days (b) 75 days (c) 100 days (d) 120 days?
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