Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 8, Problem 4P
(a):
To determine
Calculate the total
(b):
To determine
Calculate the manufacturing cost per unit.
(c):
To determine
Calculate the total variable cost
(d):
To determine
Calculate the variable cost per unit.
(c):
To determine
Calculate the total cost to recover.
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Assume you were hired as a Production Engineer in a global Bearing Manufacturer company and given the following inputs:
Equipment Maintenance Cost per Month
Utilities Cost per Month
Material Cost per Unit
Labor Cost per Unit
Selling Price per Unit
S60,000.00
$12.000.00
$12.00
$3.00
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Calculate Total Fixed Cost per Month
Calculate Total Variable Cost per Unit =
Calculate number of Units to be sold to reach Break-Even Point =
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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
• Profit = Revenue - Total cost
26. The equation that represent the total cost is:
a. ($10,875+$20) Q
b. $10,875-$20 Q
c. $10,875 × $20 Q
d. $10,875+$20 Q
27. The equation that represent the total revenue is:
a. $0.25Q²+$250Q
b. - $0.25Q²+$250Q
c. - $0.25Q²-$250Q
d. $0.25Q²-$250Q
Cincinnati Pizza produced and sold 1,500 pizzas last month and had total variable ingredient costs of $3,900. If production and sales increase by 10% next month, which of the following statements is true?
answer choices
Variable ingredient costs per unit is expected to be $2.86.
Total variable ingredient cost is expected to be $3,510.
Total variable ingredient cost is expected to be $4,290.
Total variable ingredient cost is expected to be $3,900.
Chapter 8 Solutions
Contemporary Engineering Economics (6th Edition)
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