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 3, Problem 38FE
To determine
Calculate the maximum economic price.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and
it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The
company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total
holding and ordering cost in RO? Round-up to the nearest integer
O a.
152
O b. None is correct
O c. 725
O d. 625
O e. 615
A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge
for each bracelet.
Number of
bracelets
100
200
300
400
500
600
Total cost
(thousands)
Price per
bracelet
$215
$7900
$420
$7400
$625
$5900
$820
$5000
$1015
$4200
$1205
$3600
(a) of the production levels listed in the table, which gives the highest profit?
(b) Estimate the marginal cost and marginal revenue when 400 bracelets are made.
marginal cost
$
marginal revenue
$
A manufacturer produces a piece of plywood at a
labor cost of P20.00 and material at P35.00. The
fixed charges on business are P150,000.00 a month
and the variable cost is P20.00 a piece. If one
plywood sells for P60.00 each, how many pieces
must be produced each month for the manufacturer
to break even?
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
Knowledge Booster
Similar questions
- If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what selling price should Pineapple Store use to maximize profits? $62.39 $264.40 $32.95 $7.37arrow_forward1. A service station uses 2500 oil filters during the course of a year, and this usage is constant throughout the year. These oil filters are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per oil filter per year is $1.50 (or 10% of the unit cost) and the ordering cost is $18.75. There are 250 working days per year. a) What is the service station's optimal order quantity and total annual cost of inventory?arrow_forwardA production order for 200 units is recieved. The item is made on a machine that has a $20 set-up, an output of six items per hour, and a daily fixed cost of $100. The variable item cost is $1.00. What is the highest price the cmpany could afford to buy the item for, instead of producing the item itself?arrow_forward
- If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what is the maximum profit that can be expected from selling smart phone screen magnifiers? Question 1 options: $ 0, no profit $ 5,617,681 $ 1,717,764 -$ 8,004,171arrow_forwardThe following figure shows the incremental cost of two units and the marginal cost (old) of the system, when all constraints are met. If both units were dispatched at their minimum values, what would be the marginal cost of the new system (new)? Select one: a The incremental cost of unit 1 Ob. Approximately 46.3 $/MWh S/MWh 49 48 C1=45+0.02Pg1 47 46 45 44 C2=43+0.006Pg2 I C. The incremental cost of unit 2 0 100 200 300 400 500- 600 MWarrow_forwardGiven the variable costs (VC) and fixed costs (FC) from the table below, calculate the range for which each option minimizes cost. Option FC (R) VC (R/unit)A 50,000 2B 100,000 1C 60,000 1.4arrow_forward
- A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P-$739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: a. 1045034.93 O b. 713586.68 C. 3498584082.68 d. 1213500.68arrow_forwardThe cost of producing per piece of an AVR is P23.00 for labor and P37.00 for direct materials. Another variable cost is P1.00 per unit AVR to be produced. The fixed costs is P100,000.00 per month. The AVR can be sold for P75.00 each. a. determine the number of units to be produced per month to break even. b. how many units are needed to earn an amount of P200,000/month?arrow_forward= 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co kny3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?arrow_forward
- Ima Neworker requires 43 minutes to produce her first unit of output. If her learning curve rate is 76%, how many units will be produced before the output rate exceeds 5 units per hour?arrow_forwardDon't use excelarrow_forwardA plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production capacity; annual revenues are $70,000 at this capacity. The selling price per unit is $35. a. At 80% capacity, what are annual sales in number of units? b. What is the variable cost per unit? c. What is the breakeven quantity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning