Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 6, Problem 46P
To determine

Calculate the minimum annual number.

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A hand tool costs $300 and requires $1.25 labor cost per unit. A machine tool costs $3,000 and reduces labor to $0.75. What is the break-even point (in years) at 5% for an annual production of 5,000 units?
A manufacturer produces a piece of plywood at a labor cost of P20.00 and material at P35.00. The fixed charges on business are P150,000.00 a month and the variable cost is P20.00 a piece. If one plywood sells for P60.00 each, how many pieces must be produced each month for the manufacturer to break even?
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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