Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 8, Problem 48P
To determine

Calculate the present worth.

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Chester’s a local butchery expects to sell 419 675 kilograms of meat for the year 2022. Carrying costs are R 16.25 per unit and order costs are R 33.55. The organization works 310 Days per year. Determine the Economic Order Quantity (EOQ)
A company is considering two types of equipment for its manufacturing plant. The data were as follows: For Type A, the first cost is $300,000; the annual operating cost is $40,000; the annual labor cost is $60,000 while for Type B, the first cost is $400,000; the annual operating cost is $32,000; the annual labor cost is $42,000. For both types, the same Insurance and Property Taxes at 3% and same also on Payroll Taxes at 4% each. The estimated life for both types is 10 years. If the minimum required rate of return is 15%, which equipment should be selected. Use the rate of return on additional investment. Note: Show full solution and draw the line diagram. Use the proper given in the question Topic: Comparing Alternatives (Economics)
“Acme Boards” makes and sells skateboards for $240.00. The costs associated with the business include variable costs of $180 per board and fixed costs of $300,000. Determine: The number of skateboards required to sell to breakeven. The profit if they have been selling about 8,000 pr year. a) Now, they are considering undertaking an advertising program with GBC Promotions that would cost $150,000 (additional fixed cost) and increasing the price by $160 to $400. Find the number of skateboards required to sell at $400 and make the same amount of profit as in part “b”. b) What is the % sales decline that can occur in c, to make the same profit as before?
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