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 8P
To determine
Selection of alternate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A corn refining company produces corn gluten cattle feed at a variable cost of $83 per ton. If fixed costs are $130,000 per month and the feed sells for $134 per ton, how many tons should be sold each month to have a monthly profit of $550,000?
Almona, Inc. is your dad’s company. It manufactures electrostatic generators for classroom demonstrations and has a capacity of 100,000 units per year. The fixed cost of the process is $150,000. If the generators sell for $90 each, what is the maximum variable cost per unit to break even when production is at 80% of capacity?
The maximum variable cost is $ per unit.
ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost
500dhs per month, they had to pay 8000hs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a monthly cost of
5,000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and
5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month
Required
1-
2- Calculate the total Fixed cost
3- Calculate the total variable cost per unit-
4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?
5 if they to earn a profit equal to 10.000 per month, for how much he should sell the unit?
6 What is the fixed cost per unit at maximum…
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
- A call center for insurance-company inquiries has a capacity of 2 million calls per year. The fixed cost of the center is $900,000 and the variable cost averages $1.90 per call. If the average revenue is $3.00 per call, determine the percentage of the capacity that must be placed each year for the center to just break even. Solve manually please, no Excel <3arrow_forwardA company has determined that the price and the monthly demand of one of its products are related by the equation D = √(400 − p), where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,125/month, and the variable costs are $100/unit. Use this information to answer, Which of the following values of D represents the breakeven point? (a) 10 units (b) 15 units (c) 20 units (d) 25 units.arrow_forwardIn the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some examples of fixed costs that change over time.arrow_forward
- A plywood manufacturer produces a piece of plywood at material cost of P3.00. The fixed charges of the busines are P50,000 a month and the variable cost is P0.50 apiece. If one piece of plywood sells for PE.00, How many pieces must be produced each moth for the manufacturer to break even? a labor cost of P0.50 andarrow_forwardQ4. 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_forwardA company produces two types of solar panels per year: x thousand of type A and y thousand of type B. The revenue and cost equations, in millions of dollars, for the year are given as follows. R(x,y) = 3x + 4y C(x,y) = x2 - 2xy + 6y2 + 5x - 28y- 9 Determine how many of each type of solar panel should be produced per year to maximize profit. ..... The company will achieve a maximum profit by selling solar panels of type A and selling solar panels of type B.arrow_forward
- Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?arrow_forwardTom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000 and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000 customers at a price of Php300/customer. Tom's total fixed cost isarrow_forward4arrow_forward
- What is meant by the implict and explicit cost.arrow_forwardThe ABC Manufacturing Company incurs an annual fixed cost of $100,000 to maintain its production facilities. Additionally, the variable cost per unit produced is $10. If the company produces and sells 5,000 units in a year, what is the total annual cost?arrow_forwardFEMA (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.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