An item with a holding cost of $400 per year can be shipped by air in 1 day, costing $250, or by ground in 5 days, costing $150. Assuming the holding costs of $400 per year are based on an operational year of 365 days, which is cheaper and by how much?
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An item with a holding cost of $400 per year can be shipped by air in 1 day, costing $250, or by ground in 5 days, costing $150. Assuming the holding costs of $400 per year are based on an operational year of 365 days, which is cheaper and by how much?
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- Leroy purchased an AI-based robotics system with the first cost of $345,000, an AOC of $148,000 per year, a $140,000 salvage value, and an ESL of 3 years. Rather than trading after 3 years, he kept the system for a total of 5 years. Due to the wear factor and expense of repairs, its AOC increased to $240,000 per year starting in year 4, plus the salvage value went to zero. At i= 10% per year, what is the percentage increase in the AW of costs that Leroy experienced? The percentage increase in the AW of costs that Leroy experienced is %.(a) How long would it take to recover an investment of $245,000 in enhanced CNC controls that include axis control to eight axes on the milling model, if the associated income is $92,000 per year, expense is $38,000 per year, and the salvage value is estimated to be 15% of the first cost? Use a MARR of 15% per year. (b) Also, write the spreadsheet function that determines np.The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1 costs $123,000, has a life of 10 years, an annual cost of $5000, and requires one operator at a cost of $24 per hour. It can process 10 tons per hour. Machine 2 costs $70,000, has a life of 6 years, an annual cost of $2500, and requires two operators at a cost of $24 per hour each to process 6 tons per hour. Assume i = 7% per year and 2080 hours per work year. Determine the annual breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1500 tons per year.
- This is the question and 4 options on an answer - I come up with 1800 but that is not an option so can you help me with the correct answer and what I am missing? please and thank you! Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18000. What is the breakeven point in dollars? $30000 $28800 $45000 $25200An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000 per year to operate, but because the centrifuge will produce a thicker “cake”, the sludge hauling cost to the monofill will be $37,000 per year less than for the belt presses. The useful lives are 5 and 10 years for alternatives BFP and Cent, respectively, and the salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. Use PW evaluation to select the more economical process at an interest rate of 6% per year over (a) the LCM of lives, and (b) a study period of 8 years. Are the decisions the same?A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,600 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, etc., are expected to be $2400. A new power line will cost $31,000 to install, with power costs expected to be $1000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, (b) what must be the first cost of the above ground line to make the two alternatives equally attractive economically?
- Handheld fiber optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If variable costs are $290 per unit and the company sells 4000 units per year, at what selling price per unit will the company break even?A manufacturing process at Simplicity XP has a fixed cost of $40,000 per month. A total of 100 units can be produced in 1 day at a cost of $3000 for materials and labor for the day. If the company’s MARR is 12% per year, compounded monthly, how many units must be sold each month at $50 per unit for the company to just break even?a machine costs 80,000 and the salvage value after 20 years is 20,000. find the equivalent annual worth cost if the annual operating cost is 18,000 and money is worth 10% per year.
- An engineering consulting firm measures its output in a standard service hour unit, which is a function of the personnel grade levels in the professional staff. The variable cost (cv) is $62 per standard service hour. The charge-out rate [i.e., selling price (p)] is $85.56 per hour. The maximum output of the firm is 160,000 hours per year, and its fixed cost (CF ) is $2,024,000 per year. For this firm, (a) what is the breakeven point in standard service hours and in percentage of total capacity? (b) what is the percentage reduction in the breakeven point (sensitivity) if fixed costs are reduced 10%; if variable cost per hour is reduced 10%; and if the selling price per unit is increased by 10%?A jalapeno canning company is faced with a make/ buy decision. Cardboard shipping cartons can be purchased for $0.60 each or made in-house. If manufactured, two machines will be required. Machine X will cost $20,000 and have a life of 6 years with a $2000 salvage value. Machine Y will cost $11,000 and have a life of 4 years with no salvage value. The annual maintenance cost for machines X and Y are $6000 and $5000 per year, respectively. A total of four operators will be required for the two machines at a rate of $22.50 per hour per person. In a normal 8-hour day, the four operators and two machines can produce 1000 cartons. The variable cost per carton associated with the in-house option is closest to: (a) $0.0625 (b) $0.10 (c) $0.72 (d) $0.81Accurate air flow measurement requires straight, unobstructed pipe for a minimum of 10 diameters upstream and 5 diameters downstream of the measuring device. In one particular application, physical constraints compromised the pipe layout, so the engineer was considering installing the air flow probes in an elbow (Plan A), knowing that flow measurement would be less accurate but good enough for process control. This plan would be acceptable for only 2 years, after which a more accurate flow measurement system with the same costs will be available. Plan A has a first cost of $25,000 with annual M&O estimated at $4000. Plan B involves installation of a recently designed submersible air flow probe. The stainless steel probe could be installed in a drop pipe with the transmitter located in a waterproof enclosure on the handrail. The cost of this system will be $88,000, but because it is accurate, it would not have to be replaced for at least 6 years. Its maintenance cost is estimated to…