New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
finance

Engineering Economy 15th edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling - Solutions

A soft drink company with bottling plant automation software installed incurs an annual fixed cost of $10,000. Direct labor is $3.50 per package and material cost is $4.50 per package. The selling price will be $12.50 per package. What is the breakeven point S in $ and in units.
A manufacturing concern produces a product which is sold at a price of $10.50 per unit. The plant's fixed cost is $50,000 and its variable cost is $6.50 per unit. How many units should be produced at the breakeven point? How many units must be produced in order to earn a profit of $10,000? What
A company, XYZ has an estimated sales volume of 200 units with unit sales price of $25. Compute the breakeven point using the information given in the following table, if:a. Fixed cost increases by 10%b. Variable cost increases by 10%c. Sales price increases by 10%
Classify each of the following cost items as mostly fixed or variable:Raw materials ...............................Administrative salariesDirect labor ..................................Payroll taxesDepreciation .................................Insurance (building and equipment)Supplies
A plant produces a commodity whose selling price is given by the function P = $500 - 0.0025D per unit, where D is the number of units manufactured. Total fixed cost is $26,335 per year and variable cost V = $440 - 0.005D. The plant is designed to manufacture 5000 units per year. Determine the level
A regional airline company estimated four years ago that each pound of aircraft weight adds $30 per year to its fuel expense. Now the cost of jet fuel has doubled from what it was four years ago. A recent engineering graduate employed by the company has made a recommendation to reduce fuel
Jerry Smith's residential air conditioning (AC) system has not been able to keep his house cool enough in 90°F weather. He called his local AC I maintenance person, who discovered a leak in the evaporator. The cost to recharge the AC unit is $40 for gas and $45 for labor, but the leak will
Ethanol blended with gasoline can be used to power a "flex-fueled" car. One particular blend that is gaining in popularity is E85, which is 85 % ethanol and 15% gasoline. E85 is 80% cleaner burning than gasoline alone, and it reduces our dependency on foreign oil. But a flex-fueled car costs $1,000
The fixed cost for a steam line per meter of pipe is $450X + $50 per year. The cost for loss of I heat from the pipe per meter is $4.8/X1/2 per year. Here, X represents the thickness of insulation in meters, and IX is a continuous design variable. a. What is the optimum thickness of the
A farmer estimates that if he harvests his soybean crop now, he will obtain 1,000 bushels, which he can sell at $3.00 per bushel. However, he estimates that this crop will increase by an additional 1,200 bushels of soybeans for each week he delays harvesting, but the price will drop at a rate of 50
The cost of operating a large ship (CO) varies as the square of its velocity (v); specifically, CO = knv2, where n is the trip length in miles and k is a constant of proportionality. It is known that at 12 miles /hour, the average cost of operation is $100 per mile. The owner of the ship wants to
A manufacturing concern's total cost function is C = X/5 and its revenue function is R = 39 log(8X + 1). Find the optimum output where the profit is maximized and the maximum profit.
According to the U.S. Department of the Interior, the amount of energy lost because of poorly insulated homes is equivalent to 2 million barrels of oil per day. In 2009, this is more oil than the United States imports from Saudi Arabia each day. If we were to [insulate our homes as determined by
One component of a system's life-cycle cost is the cost of system failure. Failure costs can be reduced by designing a more reliable system. A simplified expression for system life-cycle cost, C, can be written as a function of the system's failure rate:C = Cl / λ + CR ∙ λ ∙ t.Here, Cl =
A team of researchers has developed a process for extracting combustible methane gas from garbage. With a specially adapted internal combustion engine, the team claims that an automobile can be propelled 25 km per day from the garbage accumulated by a small village. Their experimental car travels
Stan Moneymaker has been shopping for a new car. He is interested in a certain 4-cyIinder sedan that averages 28 miles per gallon. But the salesperson tried to persuade Stan that the 6-cylinder model of the same automobile only costs $2,500 more and is really a "more sporty and responsive" vehicle.
A producer of synthetic motor oil for automobiles and light trucks has made the following statement: "One quart of Dynolube added to your next oil change will increase fuel mileage by one percent. This one-time additive will improve your fuel mileage over 50,000 miles of driving." a. Assume the
An automobile dealership offers to fill the four tires of your new car with 100% nitrogen for a cost of $20. The dealership claims that nitrogen-filled tires run cooler than those filled with compressed air, and they advertise that nitrogen extends tire mileage (life) by 25%. If new tires cost $50
In the design of an automobile radiator, an engineer has a choice of using either a brass-copper alloy casting or a plastic molding. Either material provides the same service. However, the brass-copper alloy casting weighs 25 pounds, compared with 20 pounds for the plastic molding. Every pound of
Rework Example 2-9 for the case where the capacity of each machine is further reduced by 25% because of machine failures, materials shortages, and operator errors. In this situation, 30,000 units of good (nondefective) product must be manufactured during the next three months. Assume one shift per
Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill operations. Design A will require 16 hours of lathe
A gear manufacturer produces gears for a machine. Two processes, casting and forging, are possible for manufacturing, and the parameters of each process are as follows:Assume that the daily demand for gears allows all defect-free gears to be sold. Additionally tested or rejected gears cannot be
The speed of your automobile has a huge effect on fuel consumption. Traveling at 65 miles per hour (mph) instead of 55 mph can consume almost 20% more fuel. As a general rule, for every mile per hour over 55, you lose 2% in fuel economy. For example, if your automobile gets 30 miles per gallon at
Suppose that four 85-octane gasoline pumps and three 89-octane gasoline pumps provide as much profit at a local convenience store in five days as three 85-octane pumps and five 89-octane pumps provide in four days. Which gasoline pump produces greater profit for the store?
Refer to Example 2-11. Would the pump recommendation change if the cost of electricity was $0.15 per kWh? What if the pumps were only required for 3,000 operating hours
John Bros, owner of a spark plug manufacturing facility, is looking to expand his production capacity. He is considering three locations A, B, and C for the construction of a new plant. The company wishes to find the most economical location for an expected volume of 2,500 units per year. Bros
The annual demand for an item that can be either purchased or produced is 3000 units. Costs associated with each alternative are as follows:Should the item be manufactured or purchased? What is the optimum lot size for the least cost alternative?
A national car rental agency asks, "Do you want to bring back the economy-class car full of gas or with an empty tank? If we fill up the tank for you, we'll charge you $2.70 per gallon, which is 30 cents less than the local price for gasoline." Which choice should you make? State your assumptions.
One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit and will cost $23 per ton of material removed. A second method of development will recover only 50% of the ore deposit, but it will cost only $15 per
A company manufactures a product that is used in-house as well as having commercial applications. The fixed cost is $70,000 per month and variable cost is $80 per unit. The selling price per unit is given by P = $200 - 0.02D. Determine: a. The optimum volume for this product and confirm that a
Which of the following statements are true and which are false? (all sections) a. Working capital is a variable cost. b. The greatest potential for cost savings occurs in the operation phase of the life cycle. c. If the capacity of an operation is significantly changed (e.g., a manufacturing
A hot water leak in one of the faucets of your apartment can be very wasteful. A continuous leak of one quart per hour (a "slow" leak) at 155°F causes a loss of 1.75 million Btu per year. Suppose your water is heated with electricity. a. How many pounds of coal delivered to your electric utility
Albany, NY. For transportation, the group will rent a car from either the State Tech Motor Pool or a local car dealer. The Motor Pool charges $0.36 per mile, has no daily fee, and pays for the gas. The local car dealer charges $30 per day and $0.20 per mile, but the group must pay for the gas. The
Web Exercise Home heating accounts for approximately one-third of energy consumption in a typical U.S. household. Despite soaring prices of oil, coal, and natural gas, one can make his/her winter heating bill noninflationary by installing an ultra convenient corn burning stove that costs in the
Refer to Example 2-7. If the average inside temperature of this house in Virginia is increased from 65° F to 72° F, what is the most economical insulation amount? Assume that 100,000,000 Btu are lost with no insulation when the thermostat is set at 65°F. The cost of electricity is now $0,086 per
Stan Moneymaker presently owns a 10-year-old automobile with low mileage (78,000 miles). The NADA "blue book" value of the car is $2,500. Unfortunately, the car's transmission just failed, and Stan decided to spend $1,500 to have it repaired. Now, six months later, Stan has decided to sell the car,
What are the key factors in this analysis, and how would your decision change if the assumed value of these factors changes? For example, what impact does rising fuel costs have on this analysis? Or, what if studies have shown that drivers can expect to avoid at least one accident every 10 years
Visit your local car dealer (either in person or online) to determine the cost of the daytime running lights option. How many accidents (per unit time) would have to be avoided for this option to be cost effective?
What is the optimal number of units that should be produced and sold each month?(a) 10 units (b) 15 units (c) 20 units (d) 25 units
Which of the following values of D represents the breakeven point? (a) 10 units (b) 15 units (c) 20 units (d) 25 units A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in
How many units per year must be sold for the company to breakeven? (a) 4,800 (b) 3,000 (c) 8,000 (d) 6,667 (e) 4,000
If 10,000 units per year are sold, what is the annual profit? (a) $280,000 (b) $50,000 (c) $150,000 (d) -$50,000 (e) $30,000
If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year? (a) 12,000 (b) 10,000 (c) 16,000 (d) 18,000 (e) 5,143
The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are 60% of the annual revenue. If annual revenue is $300,000, the annual profit/loss is most nearly which answer below? (a) $66,000 profit (b) $66,000 loss (c) $80,000 profit (d) $80,000 loss
A manufacturer makes 7,900,000 memory chips per year. Each chip takes 0.4 minutes of direct labor at the rate of $8 per hour. The overhead costs are estimated at $11 per direct labor hour. A new process will reduce the unit production time by 0.01 minutes. If the overhead cost will be reduced by
You have been invited by friends to fly to Germany for October fest next year. For international travel, you apply for a passport that costs $97 and is valid for 10 years. After you receive your passport, your travel companions decide to cancel the trip because of "insufficient funds." You decide
The fixed and variable costs for three manufacturing plant sites for a product are shown in the following table:a. Over what range of production is each location optimal? b. Which site is best for the production of 200 units?
A friend of yours has been thinking about quitting her regular day job and going into business for herself. She currently makes $60,000 per year as an employee of the Ajax Company, and she anticipates no raise for at least another year. She believes she can make $200,000 as an independent
Duncan Jones has made a windfall gain of $50,000. He has come up with three options of investing the money. First, he could dispose of his bachelor pad and buy a house in a nice neighbourhood. Second, he could invest the money in carefully chosen stocks and shares, which are expected to increase in
Develop an estimate for the cost of washing and drying a 12-pound load of laundry. Remember to consider all the costs. Your time is worth nothing unless you have an opportunity to use it for making (or saving) money on other activities?
A water treatment plant was built in the year 2006 at a total cost of $2,000,000. Additional information is given in the accompanying table.a. Calculate a weighted index for water treatment plant construction in 2010. b. Prepare a budget estimate for a water treatment plant in 2010.
The purchase price of a natural gas-fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $28,000 would be added
An air jet manufacturing facility had a cost index equal to 90.00 per aircraft in the year 2008. The anticipated cost index for the airplane in 2013 is 110. The average compound rate of growth should hold steady for the next 20 years. If an aircraft costs $15 million to build in 2010, what is its
Five years ago, an 80 MW gas power unit cost $150,000. The cost index for the turbine 5 years ago was 180 and it is now 196. The cost capacity factor is 0.7. a. The plant engineering staff is considering a 100 MW unit of the same design to power a small isolated plant. Assume we want to add an
A railways engineering company plans to start a new metro rail line. It requires electric poles and cables to supply power. It is estimated that 40 km of cabling will be needed and that each km of cabling costs $10,000 (including labor). An electric pole is to be installed every 60 meters on
For a construction project, a building is to be air-conditioned and 500 feet of insulated ductwork is required. The duct is made from materials costing $5.00 per foot for the steel duct and $10.00 per foot for the insulation of the duct. Engineering design will cost $1500, and labor to install the
The structural engineering design section within the engineering department of a regional electrical utility corporation has developed several standard designs for a group of similar transmission line towers. The detailed design for each tower is based on one of the standard designs. A transmission
The overhead costs for a company are presently $X per month. The management team of the company, in cooperation with the employees, is ready to implement a comprehensive improvement program to reduce these costs. If you (a) consider an observation of actual overhead costs for one month analogous to
In a learning curve application, 846.2 work-hours are required for the third production unit and 783.0 work-hours are required for the fifth production unit. Determine the value of n (and therefore s) in Equation (3-5).
Mr. Greg is planning to open a new shop whose floor space spans approximately 4000-5000 gross square feet. The shop will also contain an office area measuring approximately 800 square feet. Develop a cost and revenue structure that will cover the design and construction of the shop, as well as an
Use the following information and find number of units that must be sold to achieve a profit of $50,000. Direct labor hour: ..................................... 0.5 hour/unit Direct labor costs: ..................................... $25/hour Direct material cost:
The cost of building a supermarket is related to the total area of the building. Data for the last 10 supermarkets built for Regork, Inc., are shown in the accompanying table.a. Develop a CER for the construction of supermarkets. Use the CER to estimate the cost of Regork's next store, which has a
A mobile phone company launches a new model. The best competitor offers a similar phone at $500 per unit. Other pertinent data are as follows: Directory labor cost: ........................... $20.00/hour Factory overhead: .............................. 120% of direct labor Production materials:
Today a proposed community college is estimated to cost $34.6 million, which is $127 per square foot of space multiplied by 272,310 square feet. If construction costs are expected to increase by 19% per year because of high demand for construction labor and materials, how much would a
Your FICO score is a commonly used measure of credit risk (see www.myfico.com). A score of 850 is the best (highest) score possible. Thirty-five percent of the FICO score is based on payment history for credit cards, car loans, home mortgages, and so on. Suppose your current FICO score is 720 and
A small plant has been constructed and the costs are known. A new plant is to be estimated with the use of the exponential (power sizing) costing model. Major equipment, costs, and factors are as shown in Table P3-26. If ancillary equipment will cost an additional $200,000, find the cost for the
You have been asked to prepare a quick estimate of the construction cost for a coal-fired electricity generating plant and facilities. A work breakdown structure (levels one through three) is shown is Table P3-27. You have the following information available:€¢ A coal-fired generating plant
Refer to Example 3-7. Construct a graph to show how the time to complete the 10th car changes as the learning curve slope parameter is varied from 75% to 95%.
The Betterbilt Construction Company designs and builds residential mobile homes. The company is ready to construct, in sequence, 16 new homes of 2,400 square feet each. The successful bid for the construction materials in the first home is $64,800, or $27 per square foot. The purchasing manager
Estimate the cost of an oil change (5 quarts of oil) and a new oil filter for your automobile at a local service station. It takes a technician 20 minutes to do this job. Compare your estimate with the actual cost of an oil change at the service station. What percent markup is being made by the
What cost factor is the per unit demanufacturing cost most sensitive to and why?
What is the projected impact on the per unit demanufacturing cost of a 50% increase in training costs coupled with a 90% increase in transportation costs? What is the revised cost reduction percentage?
You have been asked to estimate the per unit selling price of a new line of clothing. Pertinent data are as follows: Direct labor rate: ............................... $15.00 per hour Production material: ........................... $375 per 100 items Factory overhead:
Given the following information, how many units must be sold to achieve a profit of $25,000? Direct labor hours: ........................... 0.2 hour/unit Direct labor costs: ........................... $21.00/hour Direct materials cost: ....................... $4.00/unit Overhead costs:
Find the average time per unit required to produce the 30th unit, if the slope parameter of the learning rate is 90% and the first unit takes 450 hours.(a) -3.30693E-11(b) 305.5404 (c) 268(d) 347.3211
A student is considering the purchase of two alternative cars. Car A initially costs $1,500 more than Car B, but uses 0.05 gallons per mile, versus 0.07 gallons per mile for Car B. Both cars will last for 10 years, and B's market value is $800 less than A's. Fuel j costs $3.00 per gallon. If all
An automatic process controller will eliminate the current manual control operation. Annual cost of the current method is $4,000. If the controller has a service life of 13 years and an expected market value of 11% of the first cost, what is the maximum economical price for the controller? Ignore
A foreman supervises A, B, and eight other employees. The foreman sates that he spends twice as much time supervising A and half as much time supervising B, compared with the average time spent supervising his other subordinates. All employees have the same production rate. On the basis of equal
A power generation company spews 100 million tons of flue gases (mostly CO2 and SO2) into the environment each year. The company has committed to spending $1.5 billion in capital over the next five years to reduce its emissions by 5%. More will be spent after five years to reduce emissions
An automatic process controller will eliminate the current manual control operations. The annual cost of the current method is $5,000. If the controller has a service life of 12 years, and an expected market value of 10% of the first cost, what is the maximum economical price for the controller?
A small textile plant was constructed in 2000. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2010 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Select the closest answer. (a)
The proposed small office building in Example 3-2 has 24,000 net square feet of area heated by a natural gas furnace. The owner of the building wants to know the approximate cost of heating the structure from October through March (six months) because she will lease heated space to the building's
An electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh). The company advertises that "green power" is available in 150 kWh blocks for an additional $4 per month. (Green power is generated from solar, wind power, and methane sources.) a. If a certain customer uses
Mr. John Ratchett is planning to construct a manufacturing plant. To get production started, he will require land, infrastructure and machinery. He anticipates that production will commence in two years. In estimating future cash flows of the company, which of the following items would be
A lump-sum loan of $5,000 is needed by Chandra to pay for college expenses. She has obtained small consumer loans with 12% interest per year in the past to help pay for college. But her father has advised Chandra to apply for a PLUS student loan charging only 8.5% interest per year. If the loan
A large bank has increased its annual percentage rate (APR) on credit cards to 30%. This move was necessary because of the "additional risks" faced by the bank in a weak economy. If monthly compounding is in effect, what is the effective annual interest rate being charged by the bank?
A mortgage banking company has been evaluating the merits of a 50-year mortgage (in addition to their popular 30-year mortgage). The basic idea is to reduce the monthly payment and make home ownership more affordable. The APR of either mortgage is 6% and the compounding is monthly. a. For a
Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity of $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over this entire period of time.
A light-duty pickup truck has a manufacturer's suggested retail price (MSRP) of $14,000 on its window. After haggling with the salesperson for several days, the prospective buyer is offered the following deal: "You pay a $1,238 down payment now and $249 each month thereafter for 39 months and the
You borrow $10,000 from a bank for three years at an annual interest rate, or annual percentage rate (APR), of 12%. Monthly payments will be made until all the principal and interest have been repaid. a. What is your monthly payment? b. If you must pay two points up front, meaning that you get only
A young couple has decided to set aside some money to fund their 5-year-old daughter's college education. They want to deposit the sum in an account that earns 8% compounded continuously. Beginning when she turns 6 and ending when she turns 21, how much should they deposit on each birthday if she
The longer a loan schedule lasts, the more interest you will pay. To illustrate a $20,000-car-loan at 9% APR (compounded monthly) for three years (36 monthly payments) will incur total interest of $2,896. But a $20,000 car loan at 9% APR over six years (72 payments) will have a total interest cost
On January 1, 2005, a person's savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund is expected to be worth $400,000 on January 1, 2010, what annual rate of interest is being earned on this fund?
Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $19.80. a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges
If a nominal interest rate of 8% is compounded continuously, determine the unknown quantity in each of the following situations: a. What uniform EOY amount for 10 years is equivalent to $8,000 at EOY 10? b. What is the present equivalent value of $1,000 per year for 12 years? c. What is the future
Find the value of the unknown quantity Z in the following diagram, such that the equivalent cash outflow equals the equivalent cash inflows when r = 20% compounded continuously:
A person needs $18,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 12 years. The annual interest rate being charged is 10% compounded
Jim is a farsighted 20-year-old who wants to have $5 million saved by the time he's 30. If he can earn 5% on his funds, how much he should invest today to reach his goal?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 30
Indicate whether each of the following statements is true (T) or false (F). a. T F Interest is money paid for the use of equity capital. b. T F (A/F, i %,N) = (A/P, i %,N) + i. c. T F Simple interest ignores the time value of money principle. d. T F Cash-flow diagrams are analogous to

Showing 16700 - 16800 of 20267

First
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved