A 1,500,000 SF plant employs 300 people and produces 233,000 LCD panel per month. The plant is idle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $5,000,000 per month and variable costs of $70 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.

A 1,500,000 SF plant employs 300 people and produces 233,000 LCD panel per month. The plant is idle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $5,000,000 per month and variable costs of $70 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A 1,500,000 SF plant employs 300 people and produces 233,000 LCD panel per month. The plant is
idle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs
of $5,000,000 per month and variable costs of $70 per LCD panel. What is the total operating cost for
the plant per YEAR? Express your answer in $ to the nearest $1 million.

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