Thinking Like an Engineer
4th Edition
ISBN: 9781269910989
Author: Elizabeth A. Stephan, David R. Bowman, William J. Park, Benjamin L. Sill, Matthew W. Ohland
Publisher: Pearson Learning Solutions
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Textbook Question
Chapter 11, Problem 21RQ
Your company has developed a new high-mileage automobile. There are two options for manufacturing this new vehicle.
- Process A: The factory can be completely retooled and workers trained to use the new equipment.
- Process B: The old equipment can be modified.
A graph of the costs of each process and the revenues from sales of the vehicles is shown.
Use the chart to answer the following questions.
- a. What is the sale price per vehicle?
- b. What is the breakeven point (number of vehicles) for each of the two processes?
- c. Which process yields the most profit if 18,000 vehicles are sold? How much profit is made in this case?
- d. If the sale price per vehicle is reduced by $2000 with a rebate offer, what is the new breakeven point (number of vehicles) for each of the two processes?
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Chapter 11 Solutions
Thinking Like an Engineer
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