Given that C= $7,000 + 0.05 Yd, if the level of disposable income is $14,000, the level of consumption is Multiple Choice $7,315 $6,300 $7,700 None of these options are correct. $350
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- Jonathan is considering opening a shop for online baseball memorabilia. He has two options. He can build the web site himself and only pay for hosting. This would cost him $2,000/year. The average item for sale is $4.01. Average costs associated with each sale are $2.99. His second option is to use an existing e-commerce service. This incurs an additional monthly cost of $15/month. The site takes a cut of his sales of $0.22/item, so he is planning on also increasing his prices by $0.46/item. The remaining costs stay the same. If Jonathan sells 700 items, which option does he prefer? a. He prefers to build the site himself at Q=700. b. None of the other options. c. He is indifferent between the two options at Q=700. d. He prefers to use the e-commerce site at Q=700.Conduct a feasibility study for a project that your company is considering. Your report should focus on a financial or economic evaluation of the projectJenny Tanaka wants to buy a new car, and the annual gasoline expense is a major consideration. Her present car gets 25 miles per gallon (mpg), and she is considering purchasing a new car that gets 40 mpg. Jenny now drives about 12,000 miles per year and pays $3.25 per gallon of gasoline. She therefore calculates an annual gasoline consumption of 480 gallons for her 25 mpg car (12,000 miles/25 mpg) compared to 300 gallons consumed per year for the 40 mpg car (12,000 miles/40 mpg). Since driving the higher- mileage car would use 180 gallons less per year, Jenny estimates the new car will save her $585 in gasoline expense per year (180 gallons 3 $3.25 per gallon). Suppose Jenny buys the 40 mpg car. According to economic theory, Jenny's actual annual savings on gasoline will be 7 1 C 1 U C VI 10 V K W S TACAZEC 10 GUNS TOMBER 2 than her initial estimate of $585.
- The student chapter of the American Society of Mechanical Engineers isplanning a six-day trip to the national conference in Albany, NY. For transportation, the group will rent a car from either the State Tech Motor Pool or a local car dealer. TheMotor Pool charges $0.36 per mile, has no daily fee, and pays for the gas. The local car dealer charges $30 per day and $0.20 per mile, but the group must pay for the gas. The car’s fuel rating is 20 miles per gallon, and the price of gas is estimated to be $2.00 per gallon. Solve, a. At what point, in miles, is the cost of both optionsequal? b. The car dealer has offered a special student discount and will give the students 100 free miles per day. What is the new breakeven point? c. Suppose now that the Motor Pool reduces its all-inclusive rate to $0.34 per mile and that the car dealer increases the rate to $30 per day and $0.28 permile. In this case, the car dealer wants to encourage student business, so he offers 900 free miles for the…You are weighing the economics of installing a triple-glazed energy efficient window system in your building. The following life cycle costs and savings are provided. The study period is 25 years, and the discount rate is 10%. Is this an economically viable approach based on the Savings-to-Investment Ratio (SIR)? Triple- Glazed Energy Efficient Windows: Window Quantity takeoff: 10000 sf Initial Cost: $100/sf Annual Operating Costs: $2.5/sf Annual Energy Saving: $10/sfTrue/False: Explain your Answer. Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in anaccident from 4 percent to 1 percent over the life of the highway. If a human life is worth $4 million, then the project is worth doing as long as it does not cost more than S67,200.
- Electricity is produced with water according to the function: E = 5 + 5W-1W² where E = kilowatt-hour and W = gallons of water. Water costs $0.02 per gallon. Electricity can be sold on the grid for $0.10 per kWh (kilowatt-hour). How much water should be purchased?Q1) A restaurant uses 3000 kg of meat each month. The restaurant is replenishing the meat using an EOQ value of 2000 kg. The EOQ value was computed assuming an interest rate of 36 percent per year. Assume that the meat cost is 4TL per kg to the restaurant. What is the setup cost used in determining the EOQ value?0 What is the total cost of ordering and holding inventories?(2. B) Elaborate the saving function with the proper diagram to support your answer
- Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what is the maximum profit that can be expected from selling smart phone screen magnifiers? Question 1 options: $ 0, no profit $ 5,617,681 $ 1,717,764 -$ 8,004,171What is the 5-year Benefit-Cost-Ratio (BCR) at 10% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.095 OB. 1.145 OC. 1.140 OD 1.045 OE. 1.175
