Subject: Engineering EconomicsNeed Step by step solution within 40 minutes. Question #6:The McLaren car factory is scaling up production so they can sell 2,000 MP4 model sports cars ayear. They assembly team does only one shift a day for 12 hours, but for 280 days of the year(no weekends or holidays). During that time, they power (lights on, machine running, etc.) onlyduring shift work at $0.10 per KWh. Total parts for each car costs $200,000, and the labor costsare $100,000 per laborer (yearly salary) for 150 assembly laborers. The factory floor costs$150/square meter and is 800 square meters for all 20 manufacturing stations. Each stationdraws an average of 5 kW per hour of operation.USE THE TABLE BELOW:What are the variable costs? (show below) What are the fixed costs? (show below)Which one is a primary cost driver?What price of vehicle would make the factory break even (if all other costs were accountedfor in other stockholder share methods)?Variable CostsCost per unit Total CostFixed CostsPrice of the car

The expenditure incurred by a producer on acquiring the factors of production is referred to as the…

What are the variable costs? (show below) What are the fixed costs? (show below) Which one is a primary cost driver? What price of vehicle would make the factory break even (if all other costs were accounted for in other stockholder share methods)?

What are the variable costs? (show below) What are the fixed costs? (show below) Which one is a primary cost driver? What price of vehicle would make the factory break even (if all other costs were accounted for in other stockholder share methods)?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Subject: Engineering Economics Need Step by step solution within 40 minutes.

Question #6:
The McLaren car factory is scaling up production so they can sell 2,000 MP4 model sports cars a
year. They assembly team does only one shift a day for 12 hours, but for 280 days of the year
(no weekends or holidays). During that time, they power (lights on, machine running, etc.) only
during shift work at $0.10 per KWh. Total parts for each car costs $200,000, and the labor costs
are $100,000 per laborer (yearly salary) for 150 assembly laborers. The factory floor costs
$150/square meter and is 800 square meters for all 20 manufacturing stations. Each station
draws an average of 5 kW per hour of operation.
USE THE TABLE BELOW:
What are the variable costs? (show below) What are the fixed costs? (show below)
Which one is a primary cost driver?
What price of vehicle would make the factory break even (if all other costs were accounted
for in other stockholder share methods)?
Variable Costs
Cost per unit Total Cost
Fixed Costs
Price of the car

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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