This is for subject engineering economic analysis. I need both questions answered please, these are together. a) A new business is starting up. They estimate the materials for their product will cost $47/item. Labor to manufacture the product will be $15/item. Utilities are estimated at $600/month. Rent will be $4,500/month. Taxes are estimated at $7/item. How many product items need to be manufactured each month (assuming all are sold) to obtain a monthly profit of $3,500 if each item is priced at $100? b) A 15 KW motor cost $550 five years ago. The cost index then for electrical machinery was 525. It is 500 now. How much do you estimate a 12 KW motor would cost now? Use (0.5+x/100) for the Motor Power Sizing Exponent. (You can use 7 for the x-value in this problem)
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a) A new business is starting up. They estimate the materials for their product will cost $47/item. Labor to manufacture the product will be $15/item. Utilities are estimated at $600/month. Rent will be $4,500/month. Taxes are estimated at $7/item. How many product items need to be manufactured each month (assuming all are sold) to obtain a monthly profit of $3,500 if each item is priced at $100?
b) A 15 KW motor cost $550 five years ago. The cost index then for electrical machinery was 525. It is 500 now. How much do you estimate a 12 KW motor would cost now? Use (0.5+x/100) for the Motor Power Sizing Exponent. (You can use 7 for the x-value in this problem)
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