Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 9P
To determine
Calculate the investment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Rr.5.
A small automotive supply company manufactures fuel gauges for various types of cars.
The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88.
The average price the fuel gauge sells for is $48.20
The company manufactures its products 252 days per year. What is the minimum number of fuel guages per
day that the company must produce in order to break even?
For a motor to operate a pump, a design engineer must choose the horsepower. Horsepower rating is a design characteristic that can vary from 10 to 40 horsepower. The motor will cost $120 per year to operate, plus $0.60 per horsepower. The running expenses of such motors will be $0.055 per horsepower-hour divided by the horsepower rating. Each year, 9,000 horsepower-hours will be required.
Determine how much horsepower should be supplied to keep the overall yearly cost to a minimal.
Demonstrate that your entire cost each year has been reduced.
Chapter 11 Solutions
Engineering Economy
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - You have decided to purchase a new automobile with...Ch. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
Knowledge Booster
Similar questions
- Nissan is advertising a 24-month lease on the all-electric Leaf for $190 payable at the beginning of each month. The lease requires a $2000 down payment plus the first months payment on signing. No security deposit is required. The lessee pays for maintenance, excess wear and tear, and $0.18 per mile over 12,000 miles per year. Lease end purchase option is $17500 and lease payments total $4560. A disposition fee of $350 is due at the end of the lease period. Assuming an interest rate of 6% compounded monthly, what is the total cost of leasing if you put 40,000 miles at the end of lease?arrow_forwardEMERGENCY! Production just informed management that one of its five glycol squeezers has been destroyed by a rogue computer virus. Production capability is now only 23000 gallons at most. The squeezer cannot be fixed and IceLess cannot afford a replacement. This breakdown will NOT lower fixed costs. This breakdown will not change variable cost per unit, either. If only 23000 gallons are produced, and the earning target remains $94400 above fixed costs, what price per gallon must now be charged? (show your calculations What is the Contribution Margin Ratio (CMR) if the price is $8.82 per gallon? At a price of $10.95 per gallon, what will be the DOL (assume 23000 gallons are sold , that $94400 above fixed costs is to be earned, and that other costs are as initially given)(show your calculations).arrow_forwardConstruction on your custom home is complete and now the yard must be landscaped. The landscape contractor has estimated that 8 cubic yards of dirt and 3 cubic yards of sand will be required to level the yard and provide proper drainage. Dirt is priced at $35 per cubic yard and sand is priced at $27 per cubic yard. She has measured the yard and calculated the area needing sod to be 3600 ft2. Sod is sold in rolls that measure 90 ft? at a cost of $10 each per roll. Shrubbery installation will cost an additional $2500. Estimate the cost of the landscaping.arrow_forward
- Here are the data for an asset that is being considered: Initial cost=$35,000 Salvage value at 5 years=$5000 Rebuild cost at 3 years=$25,000 Annual net cash flow=$22,000 per year What is the ROR for this asset? (You can use the excel function "IRR" for this problem) a)53.0% b)41.0% c)43.9% d)42.8%arrow_forwardExtended Learning Exercise A company is producing a high-volume item that sells for $0.75 per unit. The variable production cost is $0.30 per unit. The company is able to produce and sell 10,000,000 items per year when operating at full capacity. The critical attribute for this product is weight. The target value for weight is 1,000 grams, and the specification limits are set at ±50 grams. The filling machine used to dispense the product is capable of weights following a normal distribution with an average (µ) of 1,000 grams and a standard deviation (σ) of 40 grams. Because of the large standard deviation (with respect to the specification limits), 21.12% of all units produced are not within the specification limits. (They either weigh less than 950 grams or more than 1,050 grams.) This means that 2,112,000 out of 10,000,000 units produced are nonconforming and cannot be sold without being reworked. Assume that nonconforming units can be reworked to specification at an…arrow_forwardProduct X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 24% and fixed cost by 13% but sales will increase to 12490 units per year. At what selling price do the break even occurs for the new design? complete solution neededarrow_forward
- A firm is considering the “make vs. buy” question for a subcomponent. If the part is made in-house, the production data would be: first cost = $350, 000; annual costs for operation = $45, 000; salvage value = $15, 000; project life = 5 years; interest = 10%; and material cost per unit = $8.50. If annual production is 10,000 units, the maximum amount that the firm should be willing to pay to an outside vendor for the subcomponent is nearest? (a) $10 per unit (b) $16 per unit (c) $22 per unit (d) $28 per unit?arrow_forwardA plant operation has fixed costs of$ | 50,000 per year and variable costs of $50 per unit. When the plant produces the maximum capacity, which is 7000 unit per year, the profit equals $1,800,000. What is the breakeven point (in units) of this plant? (Assume that the unit selling price is constantarrow_forwardA part can be made either milling. or by broaching: The tooling for the milling machine will cost P15 to make, the set-up time will cost P20 and the operating cost for each part will be P0.50. The tools for broaching will cost P475, the set-up will cost P5 and the operating cost per part will then be P0.10. What production volume of the part is necessary to justify using the broaching machine?arrow_forward
- i need helparrow_forwardCompany C manufactures electric motors. The variable costs are $5,000 per month, the average selling price of the motor is $800 per motor. Fixed costs of the company amount to $80,000 per month, which includes all taxes. Determine the number of motors that must be produced per month to breakeven.arrow_forwardQwicks Solutions is a consulting firm that offers engineering services at the price of $1,000 per hour. The cost of the management personnel, workspace, and equipment needed to provide such services totals $1,000,000 per year. The engineers performing the services are paid $475 per hour. What is the breakeven number of service hours for this company?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education