Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 7, Problem 55P
To determine

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The monthly demand for ice cans being manufactured by Mr. Cruz is 3k pieces. With a manually guillotine, the unit cutting cost is $50.00. An electrically operated hydraulic guillotine was offered to Mr. Cruz at a price of $350 and which will cut by 25% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover of the machine if he decides to buy now?
Mr. Russ T. Steele sells his old vehicle for $5000 (you get more if you private salel) and pays cash for a used (but newer vehicle) that costs $10,000. He also understands that he needs to allow for maintenance and operation costs of his vehicle. He estimates that these costs will be approximately $2000 a year and estimates that the costs will increase by $100 per year. He hopes to keep the vehicle for five years and then sell it for an estimated value of $2000. Mr. Steele has an MARR of 8%. The present value of the cash flow associated with his purchase is most nearly: Oa. -$7,400 b.$-12,400 C $12,000 Od.-$15,100
Other Shoe Company has been selling 256,000 units of sandals each year at a selling price of $37.50 per pair. Contemplating increases in variable cost and in selling price, the company calculates percent profit breakeven at -10.5%. If Other Shoe just breaks even on the changes in price and variable cost, how many total units of sandals will the company sell per year after the changes? (Rounding: whole unit.)

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Contemporary Engineering Economics (6th Edition)

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