Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 5P
To determine
Available options.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The profit relation for the following estimates at a quantity that is 10% above breakeven is: Fixed cost = $500,000 per year Cost per unit = $200 Revenue per unit = $250a. Profit = 200(11,000) - 250(11,000) - 500,000b. Profit = 250(11,000) - 500,000 - 200(11,000)c. Profit = 250(11,000) - 200(11,000) + 500,000d. Profit = 250(10,000) - 200(10,000) - 500,000
FEMA (Federal Emergency Management Agency) has ordered 25 specialized test units capable of field checking 15 separate elements in potable water inemergency situations. Thompson Water Works, Inc., the contractor, took 200hours to build the first unit. If direct and indirect labor costs average $50 perhour, and an 80% learning rate is assumed, estimate (a) the time needed to complete units 5 and 25, and (b) the total labor cost for the 25 units.
A company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below:
1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C
Sketch the Break – Even chart each three location
Chapter 4 Solutions
Basics Of Engineering Economy
Ch. 4 - State two conditions under which the do-nothing...Ch. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - The costs associated with manufacturing a...
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Two mutually exclusive projects have the estimated...Ch. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - The manager of engineering at the 900-megawatt...Ch. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Three different plans were presented to the GAO by...Ch. 4 - The U.S. Army received two proposals for a turnkey...Ch. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63APQCh. 4 - Prob. 64APQCh. 4 - Prob. 65APQCh. 4 - Prob. 66APQCh. 4 - Prob. 67APQCh. 4 - Prob. 68APQCh. 4 - Prob. 69APQCh. 4 - Prob. 70APQCh. 4 - Prob. 71APQ
Knowledge Booster
Similar questions
- Breakeven occurs where the total costs equal the total revenues. true or falsearrow_forwardThe costs and revenue projections for a new product are estimated. What is the estimated profit at a production rate of 20% above breakeven? Fixed cost = $500,000 per year Production cost per unit = $200 Revenue per unit = $250arrow_forwardThe costs and revenue projections for a new product are estimated. What is the estimated profit at a production rate of 20% above breakeven? Fixed cost = $325,000 per year Production cost per unit = $236 Revenue per unit = $322 The estimated profit is determined to be $ per year.arrow_forward
- The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10 years, has an AOC of $5,000, and requires one operator at a cost of $24 per hour to process 16 tons per hour. Machine 2 costs $70,000, has a life of 6 years, has an AOC of $2,500, and requires two operators at a cost of $26 per hour for each operator to process 6 tons per hour. Determine the breakeven tonnage of scrap metal at /= 7% per year and select the better machine for a processing level of 1,000 tons per year. The breakeven tonnage of scrap metal is SA machine 1 tons, and the better machine for a processing level of 1000 tons per year isarrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is 112000 units. (Round your response to the nearest whole number.) Part 3 b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month? The monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month is $enter your response here. (Round your response to the nearest dollar and include a minus sign if necessary.)arrow_forwardA student's course grade is based on one midterm that counts as 20% of his final grade, one class project that counts as 25% of his final grade, a set of homework assignments that counts as 50% of his final grade, and a final exam that counts as 5% of his final grade. His midterm score is 63, his project score is 82, his homework score is 90, and his final exam score is 70. What is his overall final score? What letter grade did he earn (A, B, C, D, or F)? Assume that a mean of 90 or above is an A, a mean of at least 80 but less than 90 is a B, and so on. His overall final score is nothing. (Type an integer or a decimal rounded to one decimal place as needed.) His letter grade is (1) (1) C. F. D. B. A.arrow_forward
- Q4. Steel cable barriers in highway medians are a low cost way to improve traffic safety without overstressing department of transportation budgets. Cable barriers cost $44,000 per mile, compared with $72,000 per mile for guardrail and $419,000 per mile for concrete barriers. Furthermore, cable barriers tend to snag tractor-trailer rigs, keeping them from ricocheting back into same-direction traffic. The state of Ohio spent $4.97 million installing 113 miles of cable barriers. Answer the following using both tabulated factors and a spreadsheet function. (a) If the cable barriers prevent accidents totaling $1.3 million per year, what rate of return does this represent over a 10-year study period? (b) What is the rate of return for 113 miles of guardrail if accident prevention is $1.1 million per year over a 10-year study period?arrow_forwardCompany E manufactures regulators at a labor cost of $90 per unit and material cost of $300 per unit. The fixed charges on the business are $15,000 per month and the variable costs are $20 per unit per month. If the regulators are sold to retailers at $600 each, how many units must be produced and sold per month to breakeven?arrow_forward3arrow_forward
- Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $340,000 each. The fixed construction cost for the upper deck area is estimated to be $5,780,000, with a variable cost of $170,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? x = (b) Preliminary drawings for the stadium show that space is available for the construction of up to 52 luxury boxes. Promoters indicate that buyers are available and that all 52 could be sold if constructed. (ii) What profit is anticipated? (Enter a negative value if a predicted loss.) $arrow_forward(b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table 1. Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit of student matric number. (i) (ii) Capital Investment (RM) Annual maintenance (RM) Useful life (years) Market Value (RM) (Disposal Cost) Table Q1(b): Palm oil truck TITAN 58,000 + (100 x L3D) 3,000 5 30,000 CIMC 61,000 + (100 x L3D) 2,000 Draw cash-flow diagram for each truck. 10 (iii) Justify which brand should be selected. 15,000 ALIB 67,000 + (100 x L3D) 1,000 10 17,000 Apply the private project evaluation method to compare the annual worth (AW) for each truck.arrow_forward8.24 The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10 years, an AOC of $5000, and requires one operator at a cost of $24 per hour to process 10 tons per hour. Machine 2 costs $70,000, has a life of 6 years, an AOC of $2500, and requires two operators at a cost of $24 per hour for each operator to process 6 tons per hour. a. Determine the breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1000 tons per year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher: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 & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education