Focus on the difference between feasible alternatives (Principle 2) Insulated concrete forms (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 40% less than in a similar wood-framed building in upstate New York. An ICF home will be approximately 20% more expensive to construct than a wood-framed home. For a typical 2,200 ft home costing $130 per ft to construct in upstate New York and costing $250 per month to heat and cool, how many months does it take for a 2,200 ft² ICF home to pay back its extra construction cost? D It will take months to pay back the extra ICF construction cost through monthly energy savings. (Round to the nearest whole number)

Focus on the difference between feasible alternatives (Principle 2) Insulated concrete forms (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 40% less than in a similar wood-framed building in upstate New York. An ICF home will be approximately 20% more expensive to construct than a wood-framed home. For a typical 2,200 ft home costing $130 per ft to construct in upstate New York and costing $250 per month to heat and cool, how many months does it take for a 2,200 ft² ICF home to pay back its extra construction cost? D It will take months to pay back the extra ICF construction cost through monthly energy savings. (Round to the nearest whole number)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 2.2CE

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If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15 −x 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, Π(x) for company A. (iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company A in the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes. (vi) From your graph, determine the break-even level of output for company A. (vii) Derive the total revenue function, R(x) for company B. (viii) Derive the profit…
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