Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
Chapter 8, Problem 23P
(a):
To determine
Calculate the cost.
(b):
To determine
Minimizing the cost.
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A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs are
$10,875. The price demand relationship for this product is P=-0.25Q+ 250, where P is the unit sales
price of the product and Q is the demand of solar panels. Given the following:
• Total cost = Fixed cost + Variable cost
• Revenue = Demand x Price
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26. The equation that represent the total cost is:
a. ($10,875+$20) Q
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27. The equation that represent the total revenue is:
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How do the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?
Last month the ICE business sold 24,000 liters of ice cream. The variable cost per liter was €2.7 and the contribution of sales to covering the fixed cost was equal to with 25% of the revenue. Last month's profits were €10,000 (a) What was the cost function last month? (b) If a new supplier to the business ensures a reduction in variable costs by 0.4 € / liter, but at the same time it needs an increase in the monthly advertising expenditure by €3,000, what will the new cost function be? (c) If ICE can raise the price by 10%, what should its output be so that its profit to increase by 20%?
Chapter 8 Solutions
Engineering Economy
Ch. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10P
Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - A commercial building design cost 89/square-foot...Ch. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Prob. 39PCh. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 42PCh. 8 - Prob. 43PCh. 8 - Prob. 44PCh. 8 - Prob. 45PCh. 8 - Prob. 46PCh. 8 - Prob. 47PCh. 8 - Prob. 48PCh. 8 - Prob. 49SECh. 8 - Prob. 50SECh. 8 - Prob. 51SECh. 8 - Prob. 52CSCh. 8 - Suppose the cost of electricity is expected to...Ch. 8 - Prob. 54CSCh. 8 - Prob. 55FECh. 8 - Prob. 56FECh. 8 - Prob. 57FECh. 8 - Prob. 58FECh. 8 - Prob. 59FECh. 8 - Prob. 60FECh. 8 - Prob. 61FE
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