Engineering Economy (16th Edition) - Standalone book
Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 2, Problem 33P
To determine

Calculate the difference in unit cost.

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While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. You can’t spare the time to pick up the pizza and must have it delivered. “Pick-Up-Sticks” offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). “Fred’s” offers the round, deep-dish Sasquatch, which is 20 inches in diameter. It is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. Solve, a. What is the problem in this situation? Please state it in an explicit and precise manner. b. Systematically apply the seven principles of engineering economy (pp. 3–6) to the problem you have defined in Part (a). c. Assuming that your common unit of measure is dollars (i.e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unitof volume? d. What other…
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A small automotive supply company manufactures fuel gauges for various types of cars. The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88. The average price the fuel gauge sells for is $48.20 The company manufactures its products 252 days per year. What is the minimum number of fuel guages per day that the company must produce in order to break even?
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