Engineering Economy 16th edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling - Solutions

A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows:Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.
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
A company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data:Option A: Purchase 10,000 items per year at a fixed price of $8.50 per item. The cost of placing the order is negligible according to the present
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 $3.50 per gallon, which is 50 cents less than the local price for gasoline.” Which choice should you make? State your
Ocean water contains 0.9 ounces of gold per ton. Method A costs $550 per ton of water processed and will recover 90% of the metal. Method B costs $400 per ton of water processed and will recover 60% of the metal. The two methods require the same capital investment and are capable of producing the
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 ultraconvenient corn burning stove that costs in the neighborhood of
Refer to Example 2-4. If your focus was on reducing expenses, would it be better to reduce the fixed cost (B1) or variable cost (B2) component? What is the effect of a ± 10% change in both of these factors?

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