ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 66P
(a)
To determine
To find: The material cost in 2020.
(b)
To determine
To find: The material cost in 2023.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Homeowner Henry is building a fireplace for his house. The fireplace will require 2500 bricks. (a) If the cost of a Chimney Brick in 2007 was $2.10, calculate the material cost of Henry’s project in 2020. The Chimney Brick Index (CBI) was 442 in 2007 and is expected to be 651 in 2020. (b) Estimate the material cost of a similar fireplace to be built in the year 2023. What assumption did you make?
It is assumed that the machine handles a flow rate of 0.5 million gallons per day. The cost
of the machine is $1.24 million in 2020. The correlation exponent is 0.14. The cost index
has been updated from 156 to 221 this year. The cost today for a flow of 2.3 million gallons
per day is:
a. $8,752,042
b. $2,175,081
c. $5,347,061
d. $3,562,455
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
Chapter 14 Solutions
ENGINEERING ECONOMIC ENHANCED EBOOK
Ch. 14 - Prob. 1QTCCh. 14 - Prob. 2QTCCh. 14 - Prob. 3QTCCh. 14 - Prob. 4QTCCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6P
Ch. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Prob. 23PCh. 14 - Prob. 24PCh. 14 - Prob. 25PCh. 14 - Prob. 26PCh. 14 - Prob. 27PCh. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Prob. 36PCh. 14 - Prob. 37PCh. 14 - Prob. 38PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43PCh. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Prob. 49PCh. 14 - Prob. 50PCh. 14 - Prob. 51PCh. 14 - Prob. 52PCh. 14 - Prob. 53PCh. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - Prob. 56PCh. 14 - Prob. 57PCh. 14 - Prob. 58PCh. 14 - Prob. 59PCh. 14 - Prob. 60PCh. 14 - Prob. 61PCh. 14 - Prob. 62PCh. 14 - Prob. 63PCh. 14 - Prob. 64PCh. 14 - Prob. 65PCh. 14 - Prob. 66PCh. 14 - Prob. 67PCh. 14 - Prob. 68PCh. 14 - Prob. 69PCh. 14 - Prob. 70PCh. 14 - Prob. 71PCh. 14 - Prob. 72PCh. 14 - Prob. 73PCh. 14 - Prob. 74PCh. 14 - Prob. 75PCh. 14 - Prob. 76PCh. 14 - Prob. 77PCh. 14 - Prob. 78PCh. 14 - Prob. 79PCh. 14 - Prob. 80PCh. 14 - Prob. 81PCh. 14 - Prob. 82PCh. 14 - Prob. 83PCh. 14 - Prob. 84PCh. 14 - Prob. 85P
Knowledge Booster
Similar questions
- A manufacturing company needs to know whether to produce components for a Bird Feeder in-house or buy the components from a fabricator. To make the components in-house, the company needs to buy an injection molding machine, which costs $9,000. The company expects to produce 10,000 units per year. The following estimates have been made: Fixed cost per year Variable cost per part Make $9,000 $6.45 Buy. $0 $7.20 a. What is the break-even point? b. If the number of units produced is 10,000, which option is cheaper: Make or Buy? Explain why. b. If the number of units produced is increased to 12,500, which option is cheaper: Make or Buy? Explain why.arrow_forwardIn evaluating the feasibility of a major construction project, an engineer is interested in estimating the cost of skilled labor for the job. The engineer finds that a project of similar complexity and magnitude was completed 5 years ago at a skilled labor cost of $360,000. The ENR skilled labor index was 4038 then and is now 4681. What is the estimated skilled labor cost?arrow_forwardCompany sells titanium alloy fasteners for airframe applications. The fasteners sell in packets of 1000 units, which each packet selling for $145. The company's total cost function is:TC = 3,200,000 + 0.002 Q^2,in which Q is expressed in packets produced per year and TC in dollars per year.What is company's annual profit if the quantity of packets produced and sold per year is 50,000?arrow_forward
- The costs of producing a certain commodity consist of 125.00 per unit for labor and material cost and 320.00 per unit for other variable cost. The unit can be sold at 1,200.00. If the production capacity per month is 5,200 units, what maximum fixed amount can the company spend each month of breakeven? Answer: 3,926,000.00 Explain every process.arrow_forwardFast pls solve this question correctly in 5 min pls I will give u like for sure Svtik The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1,192. If the current index value is 1,364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large isarrow_forwardhow did they calculate (Q2/Q1)?arrow_forward
- How do the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?arrow_forwardThe total plant cost for manufacturing CO2 warning devices that have a compact gas detector and a signaling unit is $1,154,400. If the overall costfactor for the plant was 2.61, the delivered equipment cost was closest to:a. $442,300b. $501,200c. $593,700d. $613,900arrow_forwardAs a manager have been asked to estimate the total cost of producing 40 engines in your company. Current engines have an output of 135-hp per engine. 7 years ago, a similar 180-hp engine cost was 4450 KD. Beside that due to extreme competition in the industry, the cost of an engine has decreased with 9% only for 3 intervals of time throughout this period. Total cost consists of engine cost, direct labor cost and other labor-related costs. Pertinent data are as follows: Direct labor cost per hour 20 KD per hour Factory overhead 150% of direct labor Packing costs 80% of direct labor Maintenance costs 10% of engine cost Cost-capacity factor 0.75 Past experience has shown that an 85% learning curve applies to the labor required producing these engines. Maintenance cost will be paid only once at the beginning of the second year. Use the estimated time to complete the 40th engine for the purpose of estimating the direct labor cost. The time to complete the first engine has been estimated to…arrow_forward
- Please no written by hand solutions One area of concern when it comes to Starlink is the cost. For example, at the beginning of February 2023, FiberOne, a broadband internet provider in Nigeria, was providing internet with speeds of up to 500Mbps, which is fast. The installation fee was N32,231 (about US$70) and the monthly subscription cost around N100,000 (US$220). Starlink in Nigeria, meanwhile, costs about N276,000 (US$599) once- off for the kit and installation, then charges a monthly subscription fee of about [N19,800] (US$43). Starlink is cheaper in the long term than both fibre optic and mobile internet providers. But can an average rural Nigerian household with a monthly income of less than N28,000 (US$60) afford it? Given that average incomes are similarly low in most rural and remote parts of Africa, there's a risk that Starlink's targeted users on the continent won't be able to use the service. The reason that Starlink is able to charge a lower monthly price for their…arrow_forwardA company plans to start manufacturing a new sports car which will sell for $50,000. It will replace production of its family saloon car in its factory in Coventry. The fixed costs of the factory are $1,000,000 and each sports car will cost $28,000 to make. a) What is the breakeven point for the number of sports cars? Market research suggests 100 sports cars can be sold in the first year. The cost of converting the factory is $2,000,000, this is in addition to the fixed costs above. What will be the expected profit in the first year? b) A new machine costing $10,000 can reduce production cost by $1,000 per car. What effect will this have on the profit in the first year if 100 sports cars are sold?Richard's grandfather put $10,000 into a savings account for him on the day he was born 25 years ago. The account pays a fixed interest of 4.5% p.a. Richard has not spent any of the money in the account. He would like one of the new sports cars. He has a car which he bought new 2 years ago.…arrow_forwardA manufacturer produces a piece of plywood at a labor cost of P20.00 and material at P35.00. The fixed charges on business are P150,000.00 a month and the variable cost is P20.00 a piece. If one plywood sells for P60.00 each, how many pieces must be produced each month for the manufacturer to break even?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher: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: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning