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 2, Problem 41P
To determine
The alternative that can be recommended if 4,000 housings are manufactured.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A new machine comes with 200 free service hours over the first year.
Additional time costs $150 per hour. What are the average costs per
hour for the quantities of 55?
Answer:
Selling price per large Snowie
$ 5.00
Ice per Snowie
$ 0.20
Spoon straw (need one per Snowie)
$ 0.02
Styrofoam cup (need one per Snowie)
$ 0.08
Napkin (need two per Snowie)
$ 0.02
Servings per gallon of syrup
28
Cost per gallon of syrup (includes concentrate, preservative, and sugar)
$ 8.00
Hourly rate for workers
$ 10.00
Event registration fee per day
$ 25.00
Electricity, insurance, maintenance, and permit costs per month
$ 250.00
Kiosk rental cost per month
$ 650.00
Purchase cost of two ice shavers (5-year life)
$ 3,180.00
Purchase cost of a flavor station (5-year life)
$ 1,080.00
a. Number of days you anticipate opening the kiosk per month
20
b. Number of hours you will work (no wages required) per day
6…
The variation of the total production cost with the production
rate for a process is defined as follows.
ALL = 2 000 000 + 4q + 2.5 q1.1 (ECU / year) q [=] kg / year
a) Plot the change of total production cost according to the
production speed.
b) Find the annual fixed and variable costs for the case where
the production rate is 2 000 000 kg / year.
c) Find the average and interface costs for the same
production capacity.
d) If the market selling price of the product is 20 ECU/ unit,
what should be the minimum production rate in order not to
damage the organization?
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
Knowledge Booster
Similar questions
- The Big Show drive-in has fixed costs of $ 6,916 per month and variable costs are $ 2.15 per ticket, if the owner decides to sell each of the ticket offices for $ 7.75 per person. 1. How many lockers must you sell per month to guarantee breakeven?arrow_forwardA group can charter a particular aircraft at a fixed total cost. If 36 people charter the aircraft rather than 40 people, then the cost per person is greater by $12. Whatis the fixed total cost, in dollars, to charter the aircraft?arrow_forwardGiven = TC = f(q) = 0.3q2 -105q + 120,000 What volume should be produced for minimum cost? What is the minimum cost?arrow_forward
- If the marginal cost is MC = 30-10, the fixed costs are 1, then the total cost TC = (A) O'-e 100-5 (B) Q-10012 (C) Q' -e +100 +4 (D) Q'-e 100+3 O A Darrow_forwardT/F The fixed cost incur at even zero level of output.arrow_forwardIf the cost of an imported high-speed assembly-line robot is $80,000 and the in-country cost for one with thrice the capacity is $120,000, what is the value of the exponent in the cost-capacity equation? no excelarrow_forward
- Your boss is the director of reporting for the Athens County Construction Agency (ACCA). It has been his job to track the cost of construction in Athens County. Twentyfive years ago, he created the ACCA Cost Index to track those costs. Costs during the first year of the index were $14 per square foot of constructed space (the index value was set at 100 for that first year). This year a survey of contractors revealed that costs were $70 per square foot. (a) What index number will your boss publish in his report for this year? (b) If the index value was 500 last year, what was the cost per square foot last year?arrow_forwardFinf the AFC if the Total Fixed cost is 400 and the Output is 20?arrow_forwardNo written by hand solutionarrow_forward
- A New York renewable energy company pays $0.18 per kilowatthour (kWh) for the first 10,000 units of electricity each month and $0.15/kWh for all remaining units. If a firm uses 25,000 kWh/month, what is its average and marginal cost?arrow_forwardThe cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5-gallon water bottles are produced, fint the average costarrow_forwardA heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000 overhead cost. The next unit, i.e. the second unit took 3300 hours. Overhead cost for this unit was $200,000. Suppose the labor was $20 per hour. Being the production manager, you need to decide what would be the total production costs for additional 10 units after the completion of the second unit. Round the final amount to nearest integer. $1,597,832 C$1,003,183 (DNone of the abovearrow_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