Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
Chapter 2, Problem 54FE
To determine
The units that must be sold in a year for the company to reach the breakeven point.
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ENG
US
Economics
A receivable for 250.000 has been assigned to an export factor. The factoring Commission is 1%. Prepayment is 80%. Discounting charge is 4% p.a.. Receivable has been paid 90 days later than the prepayment date. How much is the total cost to the seller?
A.
8,500
B.
10,500
C.
6,500
D.
4,500
E.
2,500
F.
2,000
G.
12,500
H.
5,000
Number of wells
Total water output (in 1000s of liters/day
TR
TC
AVR
Profit
0
0
0
0
0
0
10
100
10000
600
1000
9400
20
200
20000
1200
1000
18800
30
280
28000
1800
933.3
26200
40
340
34000
2400
850
31600
50
380
38000
3000
760
35000
60
400
40000
3600
666.7
36400
70
400
40000
4200
571.4
35800
80
380
38000
4800
475
33200
90
340
34000
5400
377.8
28600
(e) Calculate the profits of the 40th well. (f) The government of Cyprus has decided to impose a license fee to limit the number ofwells to 40. What should be the price of this license fee? Show all your calculationsclearly.
Chapter 2 Solutions
Engineering Economy
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Prob. 2PCh. 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 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 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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- Number of wells Total water output (in 1000s of liters/day TR TC AVR Profit 0 0 0 0 0 0 10 100 10000 600 1000 9400 20 200 20000 1200 1000 18800 30 280 28000 1800 933.3 26200 40 340 34000 2400 850 31600 50 380 38000 3000 760 35000 60 400 40000 3600 666.7 36400 70 400 40000 4200 571.4 35800 80 380 38000 4800 475 33200 90 340 34000 5400 377.8 28600 Use your graph and the data in your table to identify the economically efficient numberof wells (Hint: What is the profit maximizing number of wells?)arrow_forwardS. The cost of platinum to be purchased to pport August production is A S198,000 B. S200,160 C. S195,840 D. S391,680 E None of the answers are corectarrow_forwardMethod of full coating is taking into account a. Only direct costs and respective contribution margin b. All costs including fixed and variable costs c. Only direct costs and respective gross margin d. Total sum of fixed costs,but only a paid amount of variable cosarrow_forward
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