Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $80,000 for proposal B. Inaddition to the proposed fixed costs from the two vendors, management at Cortez anticipates that they will have tospend $8,000 for installations to be completed. The variable cost is $13.00 for A and $11.00 for B. The revenuegenerated by each unit is $22.00.a) The break-even point in dollars for the proposal by Vendor A = $whole number).b) The break-even point in dollars for the proposal by Vendor B = $whole number).(round your response to the nearest(round your response to the nearest

Step 1: Calculate Total Fixed CostsProposal A: $50,000 (fixed cost) + $8,000 (installation) =…

Answered: Cortez Manufacturing intends to…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 24 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $32,500 and the variable costs are $1.50 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = units (round your response to the nearest whole number).
A large defense contractor is considering making a specialized investment in a facility to make helicopters. The firm currently has a contract with the government, which, over the lifetime of the contract, is worth 100mn euro to the firm. It is considering building a new production plant for these helicopters; doing so will reduce the production costs to the company, increasing the value of the contract from 100mn euro to 200mn euro. The cost of the plant will be 60mn euro. However, there is the possibility that the government will cancel the contract. If that happens, the value of the contract will fall to zero. The problem (from the company’s point of view) is that it will only find out about the cancellation after it completes the new plant. At this point, it appears that the probability that the government will cancel the contract is 0.45. Draw a decision tree reflecting the decisions and find the equilibrium.
Three priceing options are available: Silver plan: $20/month for up to 200 Mb's of service plus $0.16 for each additional Mb of service. Gold plan: $50/month for up to 1000 Mb's of service plus $ 0.08 for each additional Mb of service. Platinum plan: $100/month for up to 3000 Mb's of service plus $0.04 for each additional Mb of service. If C is the monthly charge for x Mb's of service, express C as a function of x for each plan. For how many Mb's of service is the Silver Plan the bes pricing option?
An investor has $5000 to invest in three different accounts. One is low-risk,one is a medium-risk and the third is a high-risk investment. The low-risk account is expected to pay 5.2% interest, the medium-risk investment is expected to pay 6.7% interest and the high-risk investment is espected to pay10.3% interest. Due to her age, the investor is willing to invest twice as much money in the high-risk account as in the low-risk investment. How much money should be invested in each of the accounts to anticipate a return of 8% on the total investment.
The Fore and Aft Marina is located on the Ohio River near Madison, Indiana. Fore and Aft currently operates a docking facility where only one boat at a time can stop for gas and servicing. The manager of the Fore and Aft Marina wants to investigate the possibility of enlarging the docking facility so that two boats can stop for gas and servicing simultaneously. Assume that the arrival rate is 3 boats per hour and that the service rate for each server is 9 boats per hour. (Round your answers to four decimal places.) (a) What is the probability that the boat dock will be idle? (b) What is the average number of boats that will be waiting for service? (c) What is the average time (in hours) a boat will spend waiting for service? h (d) What is the average time (in hours) a boat will spend at the dock? h (e) If customers expect to be able to be in and out of the marina within 10 minutes on average, does this system provide acceptable service? ---Select--- V since the average time a boat will…
Tabitha manufactures a product that sells very well. The capacity of her facility is 207,000 units per year. The fixed costs are $157,000 per year and the variable costs are $14 per unit. The product currently sells for $16. a. What total revenue is required for a net income of $482,000 per year? Round to the nearest cent b. If sales were at 55% of the capacity and the variable costs decreased by 25%, what would be the net income per year? Round to the nearest cent

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