2-36. A gear manufacturer produces gears for a ma-chine. Two processes, casting and forging, are possiblefor manufacturing, and the parameters of each processare as followsCastingForgingProduction rate80 gears per hour10 hours per day40 gears per hour16 hour per dayDaily production timePercent of partsrejected based onvisual inspection(20%10%Assume that the daily demand for gears allowsall defect-free gears to be sold. Additionally tested orrejected gears cannot be sold.Find the process that maximizes profit per day ifeach part is made from $5 worth of material and can besold for $70) Both processes are fully automated, andvariable overhead cost is charged at the rate of $90 perhour.

gear produce chine. Two processes, casting and forging, are possible for manufacturing, and the parameters of each process are as follows Casting Forging Production rate 80 gears per hour Daily production time 10 hours per day (20% 40 gears per hour 16 hour per day Percent of parts 10% rejected based on visual inspection Assume that the daily demand for gears allowe all defect-free gears to be sold. Additionally tested or rejected gears cannot be sold. Find the process that maximizes profit per day if mach part is made from $5 worth of material and can be old for$70) Both processes are fully automated, and rariable overhead cost is charged at the rate of $90 per our.

gear produce chine. Two processes, casting and forging, are possible for manufacturing, and the parameters of each process are as follows Casting Forging Production rate 80 gears per hour Daily production time 10 hours per day (20% 40 gears per hour 16 hour per day Percent of parts 10% rejected based on visual inspection Assume that the daily demand for gears allowe all defect-free gears to be sold. Additionally tested or rejected gears cannot be sold. Find the process that maximizes profit per day if mach part is made from $5 worth of material and can be old for$70) Both processes are fully automated, and rariable overhead cost is charged at the rate of $90 per our.

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 certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
It is the sum of all costs that are incurred periodically and continuously in order that the project in which an investment has been made may be operated, produce a commodity or service and distribute and sell that commodity or service. Salvage cost Profit Operating cost Fixed cost
When the production starts, the value of Total fixed cost is 0 True/False
Answer correctly please. Don't do wrong. I ll rate
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
Question 4. Please help with a & b. Thank you
True/False Total cost can never be zero
Biwei decides to set up a small business in NYC. The start-up cost is $1000 for a license and the estimated direct cost is $4 per output. After one year, Biwei’s business becomes profitable. Sonia plans to enter the same business in thesame area. What would be the cost facing Sonia? Does she bear the same cost as Biwei?
Economic cost is equal to the sum of exiplicit and implicit costs. True/ False