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 company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate
relationship between price and demand is
p = 38+ (2,700/D) - (5000/D²) for D>1
The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit.
What is the number of units that should be produced and sold each month to maximize profit?
A 71
B 60
с 50
D 25
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
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Capacity utilization rate
Chapter 2 Solutions
Engineering Economy (17th Edition)
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Given below is a numbered list of cost terms. For...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Suppose you are going on a long trip to your...Ch. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - A company uses a variable speed honing machine to...Ch. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
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