Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 8, Problem 1ST
(a):
To determine
Breakeven volume.
(b):
To determine
Calculate the marginal contribution rate.
(c):
To determine
Calculate the marginal contribution rate.
(d):
To determine
Selection of working days.
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The company, Peleton is a major manufacturer of indoor exercise trainers. Currently the company produces trainers using only one factory. However it is considering
expanding production to two or even three factories. The table above shows the company's short-run average total cost (SRATC) each month for various levels of production if
it uses one, two, or three factories. (Note: Q equals the total quantity of trainers produced by all factories.) Refer to the table. Which of the following is NOT true about the long-
run averáge cost curve of Peleton's trainers?
Peleton experiences diseconomies of scale at any quantity over 400 trainers.
The long-run average total cost of production per trainer will be $170 when 300 trainers are produced in the long run.
Peleton experiences diseconomies of scale at any quantity less than 400…
A soap company sold 250,000 soaps for which the variable cost of manufacture was $4.20 per soap. Each
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Chapter 8 Solutions
Contemporary Engineering Economics (6th Edition)
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