Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 3, Problem 5P
To determine

Calculate the payment for heat the building.

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Garber Furniture manufactures beds selling for $529 each. Variable costs per unit are $187 for direct material, $165 for direct labor, $44 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs for production overhead are $200,000 and for selling and administrative costs $124,000. What is the number of units required to breakeven? 2,436 units 2,492 units 1,831 units 2,746 units 612 units Onone of the above / listed
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Insulated concrete forms (ICF) can be used as a substitute for traditional wood framing in building construction. Heating and cooling bills will be about 50% less than in a similar wood-frame home in Vermont. An ICF home will be approximately 10% more expensive to construct than a wood-frame home. A typical 2,000 square-foot home costs $120 per square foot to build with wood framing in Vermont and costs $200 per month (on average) to heat or cool.What is the IRR on the incremental investment in an equivalent-sized ICF home? The home’s residual value with both framing methods in 20 years is expected to be $280,000.
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