Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 11P
To determine
Selecting the alternate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Problem 2: As a building designer, you have been asked to analyze and select the best
window frame type alternative-either aluminum or steel. The project is located in a remote
area, and the nearest industrial area hosting steel and aluminum windows frames
manufacturers is 250 km away. All project windows are identical, and the circumference of
the window frame is 6.2 meter. A crew of two labors is required to manufacture one steel
frame. It takes 2.5 hours to manufacture the first window every day, and the learning rate is
0.9. The number of production units is per day is limited to 8. The weight of steel is 12 kg per
meter, and the weight of aluminum is 4.5 kg per meter. The cost of steel is 0.4 OMR per kg
and the cost of aluminum 1.1 OMR per kg. If 45 windows frames are required for the project,
the crew cost is 3 OMR per hour for steel frames and 3.6 for aluminum frames, and the
transportation, price is 0.01 OMR per kg per 50 km, which alternative would you select?
The city engineer and economic development directors are evaluating two sites for construction of a multipurpose sports arena. The
sites are downtown (DT) and southwest (SW) of the metropolitan area. The city already owns enough land at the DT site; however, the
land for a parking garage will cost $1 million, and construction costs will be $16 million for the parking garage, infrastructure relocation,
and drainage. The SW site is 30 km from downtown, but the land will be donated by a developer who knows that an arena at this site
will dramatically increase the value of the remainder of his land holdings. Because of its centralized location, there will be greater
attendance at most of the events held at the DT site. This will result in more revenue to vendors and local merchants in the amount of
$700,000 per year. Additionally, the average attendee will not have to travel as far, resulting in annual benefits of $400,000 per year.
All other costs and revenues are expected to be the same…
Suppose a researcher is analyzing the economic efficiency of two different production techniques, A and B, in a manufacturing industry. Technique A has a fixed cost of $10,000 and variable costs of $5 per unit, while technique B has a fixed cost of $15,000 and variable costs of $3 per unit. The market price per unit of the product is $20. Calculate the breakeven point in terms of units for each technique, and determine which technique is more efficient in terms of lower breakeven sales.
Chapter 14 Solutions
Engineering Economy (17th Edition)
Knowledge Booster
Similar questions
- Various techniques have been proposed to curb cross-border drug smuggling into a country. The costs of implementing each strategy along a particularlyrugged section of the border are indicated below. The table also includes a score that is compiled based on deterrence, interdiction, and apprehension, witha higher score indicating better performance. For a budget of $51 million,determine the total cost of the most cost-effective techniques. Cost, $ Activity Tethered Aerostats Boots-on-the-Ground Fence Motion Sensors Score 4.3 8 40.1 52 13.7 12 7.8 7 Seismic Sensors 5.4 Drones 12.4 26arrow_forwardThe city engineer and economic development directors are evaluating two sites for construction of a multipurpose sports arena. The sites are downtown (DT) and southwest (SW) of the metropolitan area. The city already owns enough land at the DT site; however, the land for a parking garage will cost $1 million, and construction costs will be $14.00 million for the parking garage, infrastructure relocation, and drainage. The SW site is 30 km from downtown, but the land will be donated by a developer who knows that an arena at this site will dramatically increase the value of the remainder of his land holdings. Because of its centralized location, there will be greater attendance at most of the events held at the DT site. This will result in more revenue to vendors and local merchants in the amount of $550,000 per year. Additionally, the average attendee will not have to travel as far, resulting in annual benefits of $400,000 per year. All other costs and revenues are expected to be the…arrow_forwardCost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $64,470. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,510 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is $ . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…arrow_forward
- An engineering student has only 45 minutes before the final exam in her Engineering Economy class. She needs help in understanding cost-effectiveness analysis because she knows from the instructor’s review session that a CEA problem will be on the exam. There is time for using only one method of assistance before the exam; she must select well. In a rapid process of estimation, she determines how many minutes it would take for each method of assistance and how many points it might gain for her on the final. The method and estimates follow. Where should she seek help to be most effective? Assistance from Minutes for Assistance Points Gained Teaching assistant (TA) 15 20 Slides on web 20 10 Friend in class 10 5 Instructor 20 15arrow_forwardThe town of Whoopup has decided that it needs a new public library. Although the city leaders have made this decision, the decision of location of the library is still an open question. Knowing that you have a back ground in economic decision making, they selected you to formulate their decision problem. You gather data from the city leaders to determine the important attributes to consider in the decision; you then acquire information for both sites and present it in teh shown Table . Use the tools introduced in this chapter to make a site recommendation. Prepare to defend your analysis.arrow_forwardA strawberry growing company is deciding its production and sale plan for the national and international markets.The sale price for each ton of strawberry depends on the quantity offered in the market. If x1 tons is offered for the domestic market, the sale price will be (30 - x1) CU / ton, while if x2 tons is offered for the international market, the sale price will be (40 - x2) CU / ton.The cost for each ton of strawberry for the domestic market is 10 MU, while for the international market it is 15 MU.The company has the capacity to produce up to 10 tons of strawberries for sale and according to SAG restrictions, it must dedicate at least 10% of production to the international market.For technical production reasons, the company must additionally satisfy the following restriction: x12 + x22 ≤64.d) There is the option of buying new machinery to increase the production capacity of the company. In what range should the new machine increase production capacity to suit the company? How…arrow_forward
- A strawberry growing company is deciding its production and sale plan for the national and international markets.The sale price for each ton of strawberry depends on the quantity offered in the market. If x1 tons is offered for the domestic market, the sale price will be (30 - x1) CU / ton, while if x2 tons is offered for the international market, the sale price will be (40 - x2) CU / ton.The cost for each ton of strawberry for the domestic market is 10 MUs, while for the international market it is 15 MUs.The company has the capacity to produce up to 10 tons of strawberries for sale and, according to SAG restrictions, it must dedicate at least 10% of its production to the international market.For technical production reasons, the company must additionally satisfy the following restriction: x12 + x22 ≤64.a) Raise the NLP model that allows maximizing the net profit for the companyb) State the KKT conditions for the problem and indicate whether they are necessary and / or sufficient.c)…arrow_forwardThranduil company’s market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costs and 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold.Which of the following prices is the one that maximizes the company's profit?arrow_forwardThranduil company's market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costsand 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold. Which revenue equation (R(p)) is given correctly? O R(p) = (8000 + 5000)p – 100p? O R(p) (8000 100p) * p O R(p) (50 - p) * 8000 20p OR(p) 100p? – 20p – 200.000 O R(p) 8000p * 50 - 100 20 p likle: >809A)arrow_forward
- A manufacturing company plans to expand their production and logistics facility into one of the countries listed in the following table. The cost of building such facilities in each country differ based on the state of its economic and political climate. Three cost estimates were made per country in million dollars. What is the best decision alternative using MAXIMAX CRITERION and its cost? Economic/Political Climate Country Decline Same | Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Philippines 22.5 16.8 13.8 Мexico 25.0 21.2 12.5arrow_forwardThe town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink which would cost $1.2 million and last for only one season. Operating costs would be zero. Yearly passes would be sold to anyone who wanted to use the rink. If p is the price of the pass in dollars, the number demanded would be q = 1600 - 0.5p. The council has asked you to advise them on building the rink. You should tell them that Group of answer choices a. revenues won’t cover construction costs at any ticket price. There is no way to increase total consumer surplus by building the rink. b.if the rink is built and price is set to maximize profits, the town makes a profit and consumers will be better off. c.if the rink is built and price is set to maximize profits, the town makes a profit but consumers are worse off than without a rink. d.there is no price at which ticket revenues cover costs but the total consumer surplus from the rink exceeds costs. e.None of the above.…arrow_forwardEXAMPLE 11-2 Two Alternative Breakeven Analysis: Hybrid Vehicles Gas-electric (so-called hybrid) vehicles save on gasoline consumption by shutting off the vehicle's engine while idling, giving the vehicle a boost of electric power during acceleration, and capturing electrical energy while braking. In addition to environmental benefits, the primary monetary benefit to the owner is reduced fuel cost as a result of improved gas mileage. The trade-off, however, is that the purchase price of the hybrid vehicle is higher than that of a standard gasoline-only fueled vehicle. Consider a hybrid vehicle with a sticker price of $31,500. This vehicle will average 30 miles per gallon of gasoline. A tax credit of $1,500 for the hybrid vehicle effectively reduces its sticker price to $30,000. A comparably equipped gasoline-only vehicle will cost $28,000 and will average 25 miles per gallon of gasoline. Assuming an interest rate of 3% per year and a study period of five years, find the breakeven cost…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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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