A manufacturer produces some output called "Product" using a raw material calledInput". To production of 1 ton of Product requires 3/5 ton of Input. The manufacturerhas a contract to deliver 50 tons of Product to Store M (Store M is the "market" forProduct). Input is available in Spot N (Spot N is the source of Input, equivalent to "mine"om the Spot N. The shipProduct and Input are $2 per ton per mile. We will help the manufacturer to find the totaltransport-cost minimizing factory location. To arrive at the answer, go through thefollowing steps in parts (a), (b) and (c).(a) First consider two potential locations for the factory: Spot N and Store M.Calculate shipping costs by filling in the cells of the table below. Show yourcalculationsLocation of FactorySpot NStore MInput Shipping CostTotal Shipping Cost

There are two cases hereCase1- When factory is located near sopt N then the Shipping Cost will…

Answered: A manufacturer produces some output…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

(d) I'd like to know how to cpmpute producer surplus. Thanks.
Please explain each process and show your work
E. A company is evaluating the profitability of a new product. The company must rent a space that will cost $50,000 a month, $25,000 a month in equipment rental, and monthly overhead cost of $20,000. It also costs $1000 in labor and $750 in materials to produce each unit. The company thinks the product will sell for $1975 each. How many units will the company need to produce and sell to break even? How many units will the company need to sell if it wants to earn profit of $10,000? Marlrot noo
Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
Problem 6Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its topselling product, almond croissants. The annual demandfor almond croissants is 12,000 units. The setup costs fora production run of the croissants is US$15. The holdingcost per unit per year is US$0.50. Production is mostefficient when 80 croissants are produced per day. Thecompany operates 300 days during a year.a What is the economic production quantity (EPQ)?b How many production runs will there by per year?c What is the maximum inventory level?d What is the total annual cost (in US dollars)?e What is the length of a production run in days?
Please answer it with clean and complete solution. Thank you.
2. Suppose you are given the following cost data for a product. q (units) C (dollars) 4693 4831 5001 405 420 440 (a) Use averaging to estimate MC(120) (give units of yOur answer). (b) If the revenue (in dollars) from sclling q units is R= 13.78q. estimate the effect on profit of producing and selling the 421st unit. %3D
I only need help with the last three
Please refer to the figure below. The equation for p = 105-0.005D 25,000+65D Y D (units sold) How much is the fixed cost? ОА. BD65 о В. BD22,500 ОС. BD12,500 O D. BD25,000 Cost/Revenue
Mirtha owns an online jewelry store that specializes in earrings. In March, she sells 50 pairs of earrings priced at $15. The cost of materials to create the 50 pairs of earrings was $100. The website she uses to sell her wares costs her $10 a month, and she is also charged 4% on each sale by the company that processes debit/credit card purchases. Which of the following best represents Mirth’s total cost? Group of answer choices A)The $750 Mirtha earned from earring sales minus the materials ($100), online website charge ($10), and payment processing charge (4%) B)The sum of the materials ($100), website charge ($10), and 4% payment processing charge (4%) C)The cost of all the materials used to create the earrings, $100 D)The costs of materials minus the costs it takes to run her business through the online store, in this case the $10 website charges and the 4% payment processing charge
If he wants the average cost of production to be $1, how many lures would he e) have to produce in one month? e)_ If he wants to make a profit of at least $4000 per month, what is the f) minimum number of lures he would have to produce if he sells every lure he produces for $4? f)_

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS