Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 2, Problem 28P
To determine

The best suitable insulation.

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A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year​ (i.e., per ​printing)=​$47,000 and the variable cost per unit=​$40. What is the maximum profit that can be​ achieved? What is the unit price at this point of optimal​ demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is ​$? ​(Round to the nearest​ dollar.) The unit price at the point of optimal demand is ​$? per unit. ​
An Apple Cars plant operates most efficiently (average unit cost is minimized) when producing 18,300 cars each month. It has a maximum output capability of 22,000 units per month (e.g., when its CEO, Tim Chef, forces everyone to work crazy amounts of overtime), and can make as few as 7,000 units per month without forcing the hand of executives to shift production to another plant. If the plant makes 12,770 cars in December, what was the capacity utilization rate? Round your final answer to 1 decimal place, and enter it as a percent without the percent sign; for example, use 18.9, not 18.9% or .2. Capacity utilization rate
Your boss has asked you to evaluate the economics of replacing 1,000 60-Watt incandescent light bulbs (ILBs) with 1,000 compact fluorescent lamps (CFLs) for a particular lighting application. During your investigation you discover that 13-Watt CFLs costing $2.00 each will provide the same illumination as standard 60-Watt ILBs costing $0.50 each. Interestingly, CFLs last, on average, eight times as long as incandescent bulbs. The average life of an ILB is one year over the anticipated usage of 1,000 hours each year. Each incandescent bulb costs $1.90 to install/replace. Installation of a single CFL costs $2.90, and it will also be used 1,000 hours per year. Electricity costs $0.12 per kilowatt hour (kWh), and you decide to compare the two lighting options over an 8-year study period. If the MARR is 10% per year, compare the economics of the two alternatives and write a brief report of your findings for the boss. Assume that both installation cost and cost of the bulbs occur at the…
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