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 3, Problem 10P
To determine
Calculate the estimated cost.
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Michael’s Lobster Food Truck has been operating for three years, but he’s yet to make a profit in the competitive food truck industry. Last year, he sold 2,500 items at an average price of $12. It costs him $9 to cover his ingredients for each item, and he also has fixed costs of $8,000 per year to cover for his truck, marketing, insurance, etc. What percentage increase in the number of units sold is required for Michael to break even?
A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs are
$10,875. The price demand relationship for this product is P=-0.25Q+ 250, where P is the unit sales
price of the product and Q is the demand of solar panels. Given the following:
• Total cost = Fixed cost + Variable cost
• Revenue = Demand x Price
• Profit = Revenue - Total cost
26. The equation that represent the total cost is:
a. ($10,875+$20) Q
b. $10,875-$20 Q
c. $10,875 × $20 Q
d. $10,875+$20 Q
27. The equation that represent the total revenue is:
a. $0.25Q²+$250Q
b. - $0.25Q²+$250Q
c. - $0.25Q²-$250Q
d. $0.25Q²-$250Q
In 2019, X Company sold 5,250 units of its only
product. Total revenue was $1,345,575, total variable
costs were $542,325, and total fixed costs were
$735,000. In 2020, there are only two expected
changes: variable costs will decrease by $4.70 per unit,
and fixed costs will decrease by $24,900. How many
units must X Company sell in 2020 in order to earn
$33,000?
Chapter 3 Solutions
Engineering Economy (17th Edition)
Ch. 3 - A green (environmentally friendly) office building...Ch. 3 - You are planning to build a new home with...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - The capital investment cost for a...Ch. 3 - The capacity of a switch grass-fueled ethanol...Ch. 3 - Prob. 16PCh. 3 - The time to assemble the first unit on a...Ch. 3 - Prob. 18PCh. 3 - For the data below (3.4 .3) a. Find the regression...Ch. 3 - A company that manufactures shuttle cars and mines...Ch. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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