Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 24P
(a):
To determine
Calculate the project balance.
(b):
To determine
Selection of the project.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Break-Even Point
Hilton Enterprises selis a product for $119 per unit. The variable cost is $68 per unit, while faed costs are $436,968.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit
a. Break-even point in sales units
units
b. Break-even point if the selling price were increased to 124 per unit
units
00
The fixed cost for a steam line per meter of pipe is $450X + $50 per year. Thecost for loss of heat from the pipe per meter is $4.8/X1/2 per year. Here, Xrepresents the thickness of insulation in meters, and X is a continuous designvariable. Solve, a. What is the optimum thickness of the insulation? b. How do you know that your answer in Part (a) minimizes total cost per year? c. What is the basic trade-off being made in this problem?
PROBLEM NO. 1:
The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and P10 per unit for other variable costs. Cost
of utilities and rents amounts to P850,000 per month. If the commodity is sold at P310 each;
(a) What is the profit/loss if 3369 units were sold?
(b) How many pieces must be produced each month for the manufacturer to breakeven?
Chapter 5 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - If a project costs 100,000 and is expected to...Ch. 5 - Refer to Problem 5.2, and answer the following...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Consider the cash flows from an investment...Ch. 5 - Prob. 10P
Ch. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Consider the project balances in Table P5.19 for a...Ch. 5 - Your RD group has developed and tested a computer...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Geo-Star Manufacturing Company is considering a...Ch. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Two methods of carrying away surface runoff water...Ch. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - Prob. 46PCh. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - Prob. 51PCh. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - Prob. 57PCh. 5 - Prob. 58PCh. 5 - Prob. 59PCh. 5 - Prob. 1STCh. 5 - Prob. 2ST
Knowledge Booster
Similar questions
- 4) A company produces a chemical at a rate of 1000 tons/year with a planned sale price of 0.8 TL / kg. The fixed cost is 60000 TL/year and direct production is 5.5 x 106 TL/year at full capacity. Determine the direct product cost per unit product (TL /kg). Find the breakeven capacity of the company for this product. Draw breakeven chart according to determined results in (ii). Calculate the new breakeven point if the price of the product decreased to 0.5 TL/kg.arrow_forwardAn office supplies retailer orders staplers (among other products) from the manufacturer. The annual demand for staplers has been estimated to be 250 units per month. The holding cost per unit per year has been estimated to be 1.20 $. The ordering cost is estimated to be $ 50 per order. Determine the following: a) EOQ, Annual Ordering Cost, and Holding Cost?arrow_forwardA strategy consists of buying a market index product at $430 and taking a position in put option on the index with a strike of $460. If the put premium is $12 and a 6-months interest .rates are 1.86, what is the profit or loss at expiration (in 10 months) if the market index is $440 without using a hedging strategy A( 4.565) B(3.07) c(10.04)arrow_forward
- Consider the following assumptions, field size 640 acres, non-cropped area 5 acres, 2600' total length center pivot cost of 30,000 with a life expectancy of 15 years, corn selling price of $3.75 per bushel, expected grain yield of 160 bushels per acre. If SDI irrigation costs $675 per acre installed with a life expectancy of 25 years, expected yield of 160 bushels per acre, you would be money ahead to install SDI. True Falsearrow_forwardHelp....... Solve Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. A. What is the breakeven point in (a) sales units and (b) sales dollars? B. How many units must the Write Company sells to earn a profit of $240,000 per year?arrow_forwardUsing the information given in problem 11 AND 12, please answer and show calculations for problem 12.arrow_forward
- A firm has an annual demand of S units for a good whose purchase cost is £c per unit. Each order costs £a to place, and the cost of holding stock is b% of the average value of stock per annum. Determine the optimal order quantity. A local firm uses 2000 units of a particular component each year. The component has a purchase price of £4/unit, while the cost of holding stock is estimated at 20% of the average stock value. If the cost of placing each order is £12.50, find the optimal number of orders placed each year. Suppose the component supplier offers a discount of 2% on the purchase price if orders are placed in units of 1000. Is the discount worth accepting? Suppose that instead of a single figure you had been given a probability distribution for the number of units used each year. Indicate the effect on stock policy.. Please explain fully , the last part is also important to solve.arrow_forwardGiven the initial state vector (1, 0) and the transition matrix shown below, find the state vector corresponding to two steps later (n = 2). a. (0.2002, 0.7998) b. (0.8086, 0.7998) c. (0.8086, 0.1914) d. (0.7998, 0.2002)arrow_forwardBennington Health purchased three dialysis systems each at an installed cost of $100,000 for different locations in the city. The AOC over 2 years varied as shown. (All values are costs.) The load factor in terms of percentage of clients at each location is shown in decimal form. Find the expected AW of costs for each location at /= 15% per year. Location Load Year 0 1 2 North (N) 0.50 100,000 20,000 11,000 South (S) 0.35 AOC, $ per year 100,000 15,000 12,000 The expected AW of costs for each location is $ West (W) 0.15 100,000 12,000 8,000arrow_forward
- Cal Tech Inc. manufactures video games for "The Play Station IlI". Variable costs are estimated to be $20 per unit and fixed costs are $10,875. The demand-price relationship for this product is Q = 1,000 - (4 x P) where P is the unit sales price of the game and Q is the demand in number of units. (а) (b) (с) (d) Find the breakeven quantity (or quantities). What is the company's maximum possible revenue? What profit would the company obtain by maximizing its total revenue? What is the company's maximum possible profit?arrow_forwardA firm believes a product’s sales volume (S) depends on its unit selling price (P) as S = $100 − P. The production cost (C) is $1000 + 10S. (a) Graph the sales volume (S) from 0 to 100 on the x axis, total cost and total income from $0 to $2500 on the y axis, C = $1000 + 10S, and plot the curve of total income. Mark the breakeven points on the graph. (b) Determine the breakeven point (lowest sales volume at which total sales income just equals total production cost). (c) Determine the sales volume (S) at which the firm’s profit is a maximum.arrow_forwardTwo automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education