Problem 2 Six years ago, an 80-kW diesel-electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The plant engineering staff was considering a 120-kW unit of the same general design to power a small isolated plant that would have cost $211,707. Based on the information above the plant engineering staff is considering a 100 kW unit of the same general design to power a small isolated plant. Assume we want to add a which (when isolated and estimated separately) currently costs $13,000. Determine the total cost pre-compressor, of the 100-kW unit.
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- Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost P8.00, annual demand of 40000, and ordering cost of P48. *A plant operation has fixed costs of $1771001 per year, and its output capacity is 116606 electrical appliances per year. The variable cost is $38 per unit, and the product sells for $93 per unit. a.What is the break-even point in terms of units?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 perunit 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 i (i) Derive the total revenue function,R(x) for company B.(ii) Derive the profit function,Π(x) for company B.(ii) How many t-shirts must company B sell to in order to break-even.(iv) How many t-shirts must company B sell to maximise its profit.
- Best Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They have three printing machines available to meet the order they received. The set-up cost of these machines and the unit cost/ticket printed using each machine along with their maximum production are provided in the table below: Machine A B 976400 C Cost per unit $18 $21 $24 Maximum Production 30,000 25,000 30,000 Formulate an all-integer linear programming model to find the required number of tickets produced by each machine in order to minimize the production cost. What is the optimal solution for the number of tickets produced by machine B?Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 21% and fixed cost by 11% but sales will increase to 12777 units per year. At what selling price do the break even occurs for the new design?Q2. A company is producing 2200 plates per day. The direct material cost for producing 1200 plates is AED 5300/- Direct labor cost per day is AED 3200.00 and factory over head is AED 4200.00 . If the selling cost is 28 % of the factory cost , what must be the selling price of each plate to release a profit of 20 % of the selling price ?
- 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 perunit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15 −x125 , its production cost per unit is US$5.00and its fixed cost are the same as for company A . (vii) Derive the total revenue function,R(x) for company B.(viii) Derive the profit function,Π(x) for company B.(ix) How many t-shirts must company B sell to in order to break-even.(x) How many t-shirts must company B sell to maximise its profitA jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $Q/ Machine A has a fixed cost of $40000 per year and a variable cost of S60 per unit. Machine B has an unknown fixed cost, but with this process 200 units can be produced each month at a total variable cost of $2000, If the total costs of the two machines break even at a production rate of 2000 units per year, what is the fixed cost of machine B? Let FCB - fixed cost for B. Variable cost for B = 2000/200 = S10/unit Total costs are equal at 2000 units per year. Then, 40,000 + 60(2000 units) = FCB + 10(2000 units) FCB = $140,000 per year
- The projected profit of a hi-tech recording disks retailer is Birr 200,000 for the current year based on sale volume of 200,000 units. The company has been selling the disks for $16 each; variable costs consist of the Birr 10 purchase price and Birr 2 handling cost. The retailer’s annual costs are Birr 600,000. Required: a. Calculate the breakeven point for the current year in units. b. What will be the company’s profit for the current year if there is a 10% increase in projected unit sales volume? c. Management is planning for the coming year when it expects that the unit purchase price of the disks will increase by 30%. What volume of dollar sales must the retailer achieve in the coming year to maintain the current year’s profit if the selling price remains constant at Birr 16The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.3. A civil engineer has invented a walling material that sells for P1,500/unit. The Fixed Cost of his company is P210,000.00 while the variable cost is P800.00/unit. a) What is the average number of units to be sold for the engineer to break even? Also show a graph. b) If the Variable Cost and Fixed Cost are decreased by 10% and 20% respectively, how much is the "NEW BREAK EVEN" in terms of PESOS?