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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Question
Chapter 2, Problem 54FE
To determine
The units that must be sold in a year for the company to reach the breakeven point.
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A company has a production capacity of 1100 units a year and its fixed costs are P60k. The variable cost per unit is P500 & each unit can be sold for P800. What if fixed costs is increased to P75k and the variable costs is reduced by 20%, what is new break-even point in units.
A. 198
B. 188
C.178
D. 180
Number of wells
Total water output (in 1000s of liters/day
TR
TC
AVR
Profit
0
0
0
0
0
0
10
100
10000
600
1000
9400
20
200
20000
1200
1000
18800
30
280
28000
1800
933.3
26200
40
340
34000
2400
850
31600
50
380
38000
3000
760
35000
60
400
40000
3600
666.7
36400
70
400
40000
4200
571.4
35800
80
380
38000
4800
475
33200
90
340
34000
5400
377.8
28600
(e) Calculate the profits of the 40th well. (f) The government of Cyprus has decided to impose a license fee to limit the number ofwells to 40. What should be the price of this license fee? Show all your calculationsclearly.
Number of wells
Total water output (in 1000s of liters/day
TR
TC
AVR
Profit
0
0
0
0
0
0
10
100
10000
600
1000
9400
20
200
20000
1200
1000
18800
30
280
28000
1800
933.3
26200
40
340
34000
2400
850
31600
50
380
38000
3000
760
35000
60
400
40000
3600
666.7
36400
70
400
40000
4200
571.4
35800
80
380
38000
4800
475
33200
90
340
34000
5400
377.8
28600
Use your graph and the data in your table to identify the economically efficient numberof wells (Hint: What is the profit maximizing number of wells?)
Chapter 2 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
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