Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Company E manufactures regulators at a labor cost of $90 per unit and material cost of $300 per unit. The fixed charges on the business are $15,000 per month and the variable costs are $20 per unit per month. If the regulators are sold to retailers at $600 each, how many units must be produced and sold per month to breakeven?
Evaluate a combined cycle power plant on the basis of the FW method when the MARR is 12% per year. Pertinent cost data are as follows :                       Power Plant                (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 WITH DIAGRAM CASH FLOW THANK YOU
In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some examples of fixed costs that change over time.
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