ENGINEERING ECONOMIC ENHANCED EBOOK
ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 13, Problem 15P
To determine

To find: Service life that will result in lowest equivalent uniform annual cost.

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Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. Prepare a CVP chart for the company.
Product 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 needed
An automotive manufacturer uses 200,000 radial tires per year for its new car series. The company makes its own tires, which it can produce at a rate of 800 per day. The cars are assembled uniformly over the entire year. The holding cost is $10 per tire per year. The machine setup cost for a production run of tires is $70. The firm operates 260 days per year. What is the annual carrying cost when the economic production quantity is 8,533 tires? Select the closest answer. 1) $42,665 (2) $1,641 (3) $3,282 4 $262,554
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