A small company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervisedfor 24 to 36 hours) has fixed cost of #166128 per year and variable cost of P613 per valve. If the company expects to sell 15706valves per year, then the selling price in order for the company to break even isRound your answer to 2 decimal places.

Given the fixed cost, FC = 166128 Variable cost, VC = 613 Number of sells, or break-even quantity =…

A small company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of P166128 per year and variable cost of P613 per valve. If the company expects to sell 15706 valves per year, then the selling price in order for the company to break even is

A small company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of P166128 per year and variable cost of P613 per valve. If the company expects to sell 15706 valves per year, then the selling price in order for the company to break even is

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

A manufacturer producer certain items at a labor cost per unit of P 125, material cost per unit is P150, variable cost of P5.00 each. If the item has a selling price of P750, how many units must be manufactured each month for the manufacturer to breakeven if the monthly overhead is P200,000?
Show your complete solution.
The operating cost for a machine is $40,000 for year 1 and then it increases by $5,000per year through year 10. The equivalent uniform annual cost for the machine (years 1-10) at an interest rate of 9% per year is calculated as:
Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a) What is the optimal volume of sprinklers? b) Does Smith make a profit at that volume? Thank you.
A biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small technology-based company. The rate of interest on a 5-year loan is highly variable; it could be as low as 7% or as high as 15%, but it is expected to be 10% per year. The company will only move forward with the acquisition offer if the AW is below $6 million. The M&O cost is fixed at $3.1 million per year. The anticipated sales price of the company could be $2 million if the interest rate is 7%, or as much as $2.5 million if the rate is 15%, but will most likely be about $2.45 million at a rate of 10% per year. Is the decision to move forward with the acquisition sensitive to the loan's interest rate and salvage value estimates? The annual worth with a rate of 7% is $ The annual worth with a rate of 10% is $ The annual worth with a rate of 15 % is $
Determine the minimum-cost trade-off between the MTBF and the MTTR for a system requiring 0.98 availability. The MTTR must be between 10 and 28 hr, and the MTBF must be at least 1200 hr. Consider the cost functions as: a. C(x) = 0.0002x2 ; C(y) = 12500/y b. C(x) = 2x; C(y) = 2000-y 2.
The fixed costs by manufacturer are P800,000 per year. If ABC COMPANY in a team units sells for P 3001 and its variable cost is P2075, ( a ) how many units must be sold each year for breakeven and ( b ) what will the profit be for sales of 4000 units per year?
A manufacturing company needs to know whether to produce components for a Bird Feeder in-house or buy the components from a fabricator. To make the components in-house, the company needs to buy an injection molding machine, which costs $9,000. The company expects to produce 10,000 units per year. The following estimates have been made: Fixed cost per year Variable cost per part Make $9,000 $6.45 Buy. $0 $7.20 a. What is the break-even point? b. If the number of units produced is 10,000, which option is cheaper: Make or Buy? Explain why. b. If the number of units produced is increased to 12,500, which option is cheaper: Make or Buy? Explain why.
The CFO of a consulting engineering firm is deciding between purchasing Ford Explorers and Toyota 4Runners for company principals. The purchase price for the Ford Explorer will be $30,750. Annual maintenance costs for the Explorer are expected to be $575 per year more than that of the 4Runner. The purchase price for Toyota 4Runners is 35,250 The trade-in values after 3 years are estimated to be 50% of the first cost for the Explorer and 60% for the 4Runner. (a) What is the incremental ROR between the two vehicles? (b) Provided the firm’s MARR is 15% per year, which vehicle should it buy?
The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $150,000 and an additional cost of $50.000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that = 5% per year for county funds.