City A has a travel demand function q = 2.0 x 106 – 5000t, and road performance function 50 + 8 x 10-5q, where t is in minutes. There is a proposal to expand the road such tha %3D the road performance function will become t2 = 30 + 5 x 10-59, with a construction cos of $9.6 x 107.
Q: A supplier of metal aluminium serving a Coca-Cola bottler in a large country in Latin America builds…
A: Given: Annualized Investment Cost=28 million Marginal Cost=$0.3 per can Selling price=$0.9 per can…
Q: A local company assembling stereo radio cassette produces 300 units per month at a cost of P800 per…
A: As given in the question: fixed cost=20,000 per unit variable = 800 per unit income=1200 per unit…
Q: Is a Function of Price A company produces an electronic timing switch that is used in consumer and…
A: Answer: Note: we are strictly forbidden to provide handwritten solutions from the company side.…
Q: A waiting line meeting the assumptions of M/M/1 has average time between arrivals of 2 per hour and…
A: The utilization factor or use factor is the ratio of the time that a piece of equipment is in use to…
Q: The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton.…
A: 1) Net profit in the case of method B is given as Net profit= Total revenue- Total cost First, the…
Q: The input-output curve of a gas-fired generating unit is approximated by the following function: Η…
A: Given associate input output curve of gas dismissed perform. The higher than perform is maximized…
Q: +$30,000 to +$70,000 per month in sales for extended battery life Samsung mobile is considered as…
A: Revenue is the money that is generated from the sale of regular operations of the firm. It is…
Q: A firm hasi nitial value V and has an investment opportunity costing 400 that will yield it an…
A: Initial value of the Firm = V Let equity outstanding be = E Owners hold 10 shares Price per…
Q: A company has a project for building and operating a new electricity generation station. The…
A: Total operation cost function is, C0=MHN5/3.Where Mis constant, H is operation hour and N is the…
Q: A plant engineer wishes to know which of two types of lightbulbs should be used to light a…
A: Minimum Acceptable Rate of Return (MARR) is the rate of return that a company uses to compare with…
Q: 6. Machine A and Machine B are being considered for the production of a part of a product. The…
A: The process of the combination of various material inputs as well as immaterial inputs for producing…
Q: A company manufacturing calculators has a capacity of producing 200 calculators a montl 'he variable…
A:
Q: 20 tons per day. The following data have been compiled for comparison of th two incinerators: Item…
A: Process costing is an accounting methodology that traces and accumulates direct costs, and allocates…
Q: Five years ago a dam was constructed to impound irrigation water and to provide flood protection for…
A: The cost that is projected to be incurred for the purpose of a project or an investment is known as…
Q: SCENARIO: Investors put up $520,000 to construct a building and purchase all equipment for a new…
A: Given, Investment= $520,000 The minimum return on the investment = r= 10% of total investment The…
Q: You are hired as a consultant for Cool Zone Inc. The company currently has a 1-year contract for the…
A: Let us define cost functions for all the alternatives : Total Cost = Variable Cost + Fixed…
Q: The total costs of producing 240 and 360 units are $3400 and $4000, respectively. (a) What is the…
A: TC of producing 240 units =$3400 a)Average cost = Total cost /number of units produced…
Q: Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Product X is sold for $500 per unit. The total cost of production per year, including capital…
A: Answer: Given information: Price of product X = $500 Total cost function:…
Q: A plant operation has fixed costs of$ | 50,000 per year and variable costs of $50 per unit. When the…
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…
Q: The cost of operating a large ship (Co) varies as the square of its velocity (v); specifically, Co =…
A: Step 1 Given: The cost of operating a large ship (CO) varies as the square of its velocity (v);…
Q: Suppose that KCA University intends to introduce a new course from September 2020. The college…
A: The total cost consists of total variable cost and total fixed costs. TC =VC+FCVC =AVC*Q Total…
Q: A machine used for cutting materials in a factory has the following outputs perhour at various…
A: Given: Tool Cost = P560 Number of grindings per tool = 20 Grinding cost = P54.00 Grinding & Tool…
Q: A jeweiry firm buys semprecious stones to make bracelets and rings The supplier quotes a price of…
A: Dear learner you have posted a question with multiple sub parts, as per our policy we have solved…
Q: Tom borrowed PHP500,000 from her parents to open a spa. He pays her parents a 5% yearly return on…
A: Borrowed amount = Php500,000 yearly return on money = 5% Fixed cost per year = Php150,000 Variable…
Q: An architect-engineering firm is planning a parking lot to accommodate 500 vehicles. Each parking…
A: Calculate the estimated cost of paving and making the parking lot: Calculate each parking space:…
Q: Oscar has owned a Ford automobile dealership for over 25 years. Since he has been heavily involved…
A: Solution : Profit maximizing prices : For Sunroof : $1800 [Customer A and B will buy] Profit =…
Q: A company is analyzing a make-versus-purchase situation for a component used in several products,…
A: Option A:- Cost of purchasing = 10000*$9.31 per item = $93100
Q: if a company has total costs C(x)=45000+45x+0.2x^2 and total revenue given by R(x)=635x-0.8x^2 find…
A:
Q: One of the main concerns in the coronavirus outbreak is the spreadof the virus during air travel. To…
A: 60/3=20 For 20 minutes fresh air has to be circulated Total cost=2 Average cost=total cost/output…
Q: Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is…
A: A firm in an industry will choose an output level where its level of profits get maximized. It…
Q: A Biomass Power Plant uses biodegradable wastes as fuel to produce electricity. The cost A dollars…
A: Given Cost function: A=12+0.3B+0.27B2 ... (1) Where B is in megawatts Revenue function:…
Q: Q2] (3 Marks) Break Even Formula -based: A company manufactures LED Products has the following data…
A: CM Ratio is the contribution margin ratio stating the increemental sales ratio excluding the…
Q: One of the main concerns in the coronavirus outbreak is the spreadof the virus during air travel. To…
A: For 1 hour 3/60=20 minutes
Q: A company has determined that the price and the monthly demand of one of its products are related by…
A: The breakeven point, in economics, occurs at the point where the firm’s total revenue and total…
Q: Recycling 0os't Total economic profit is highest when the recyding production method is When the…
A: The Coase theorem states that when property rights are clearly defined, perfect competition results…
Q: A company produces and sells a product and fixed costs of the company are 8500000 Baisa and variable…
A: The total cost function is the simple aggregate of the total fixed cost and the total variable cost…
Q: A firm earns an accounting profit of K150, 000 per year in project A. The firm could earn K150, 000…
A: As the projects are mutually exclusive, only one project will be choosen with better return.…
Q: The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and…
A:
Q: Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is…
A:
Q: The company PT. Surya Kencana requires raw materials of 50,000 kg per year, with a purchase price…
A: Economic Order Quantity is the quantity of goods which company should purchase to mange or minimize…
Q: A construction company is evaluating the purchase of a new concrete mixer with hydraulic hopper and…
A: Alternative 1: First Cost = 12000 Annual Cost of Machine = 12000 (A/P , 9 , 7% ) = 12000(0.153) =…
Q: The annual cost C (in thousands of dollars) and revenue R (in thousands of dollars) for a company…
A: We know that profit is the total revenue earned minus the total cost incurred by the producer. Thus,…
Q: The fixed cost for a steam line per meter of pipe is $450X + $50 per year. Thecost for loss of heat…
A: b) We can find the thickness of the pipe by minimizing the total cost per year Total yearly cost =…
Q: Q2/2 Derive the average cost function from :TC = 20 + 10GQ + %3D
A: Answer; Total Cost TC = 20 + 10Q + Q2/2 Average cost is the total cost per unit quantity…
Q: A cell phone factory has a total production cost of C - 150x+10000 and a revenue function R(x) -…
A: Total revenue is the revenue that is achieved by selling given units of a commodity. Total cost is…
Q: An architect-engineering firm is planning a parking lot to accomodate 400 vehicles. Each parking…
A: The estimation of the amount of costs that will be incurred to create a product or construct…
Q: ISR (intelligence, Surveillance & Reconnaissance) is performed by fixed-wing aircraft (still Auroran…
A:
Q: ou wish to determine the dynamically efficient rate of extraction of a non-renewable resource of two…
A: *Hi there , as you have posted multiple sub -parts within the sub parts of the question . As per our…
1: Given that the value of time is $1.5 per minute, justify the proposal.
2: To what value of the construction cost would the proposal become justified?
Step by step
Solved in 5 steps
- You have been asked to forecast the additional funds needed (AFN) for a firm, which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if the firm increased the payout from 10% to the new and higher level? All euros are in millions. Last year's sales = S0 €300.0 Last year's accounts payable €50.0 Sales growth rate = g 40% Last year's notes payable €15.0 Last year's total assets = A0* €500.0 Last year's accruals €20.0 Last year's profit margin = PM 20.0% Initial payout ratio 10.0% AFN = (A0*/S0)DS - (L0*/S0)DS - Profit margin ´ S1 ´ (1 -Payout)Consider the following data of a company for the year 1999:Sales = Rs. 1,20,000Fixed cost = Rs. 25,000Variable cost = Rs. 45,000Find the BEP.A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?
- A machine used for cutting materials in a factory has the following outputs perhour at various speeds and required periodic tool regrinding at the intervals cited .Speed Output per hour Tool regrinding A 200 pieces Every 8 hours B 280 pieces Every 5 hours A set of tools costs P560 and can be ground twenty times. Each regrinding costs P54.00 and the time needed to regrind and change tools is 1 hour. The machine operator is paid P35.00 per hour including the time the tool is changed. The tool grinder who also sets the tools to the machine is paid P40.00 per hour. The hourly rate chargeable against the machine is P38.00, regardless of machine speed. Which speed is more economical? Speed B, PO.096/pc Speed B. PO.087/pc Speed A, P.054/pc Speed A, P.037/pcSmith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a) What is the optimal volume of sprinklers? b) Does Smith make a profit at that volume? Thank you.Top Gun Marketing, Inc., offers overhead banner fly-by promotion services using their Cessna aircraft and banner creation facilities. The Padres Island firm specializes in restaurant promotion via fly-bys at outdoor events and other high-traffic centers, where each 10-minute increment of advertising costs $400. Over the past year, the following relation between fly-by advertising and incremental restaurant guests per month has been observed: Sales (units) = 5,200 + 55A - 0.8A2 MP= 55 -1.6 A Here A represents a 10-minute fly-by advertisement, and sales are measured in number of restaurant guests. Pete Mitchel, manager for the Padres Island firm, has been asked to recommend an appropriate level of advertising. In thinking about this problem, Mitchel noted its resemblance to the optimal resource employment problem he had studied in a managerial economics course that was part of his MBA program. The advertising-sales relation could be thought of as a production function with advertising as…
- Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially, and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a)What is the optimal volume of sprinklers? b)Does Smith make a profit at that volume?Product X is sold for $500 per unit. The total cost of production per year, including capital recovery and a return, is given by the expression TC = 0.04n3 − 700n + 50, 000 where n is the number of units sold. If TC represents the total of all fixed and variable costs, determine the following: a. The value of n that maximizes profit. b. The maximum profit for a year. c. The fixed cost per year.McBurger Inc., wants to redesign its kitchen to improve productivity and quality. Three designs,called B1, B2, and B3, are under consideration. No matter which design is used, daily demandfor sandwiches at a typical McBurger restaurant is 500 sandwiches. A sandwich costs 500 baizato produce. Non-defective sandwich sell, on average, for 1 OR per sandwich. Defective sandwichcannot be sold and are scrapped. The goal is to chose a design that maximizes the expected profitat a typical restaurant over a period of one year (365 days). Designs B1, B2, and B3 cost 40,0003OR, 50,000 OR, and 70,000 OR, respectively. Under design B1, there is 0.8 chance that 90 outof each 100 sandwiches are non-defective and 0.2 chance that 70 out of each 100 sandwiches arenon-defective. Under design B2, there is 0.85 chance that 90 out of each 100 sandwiches are nondefective and 0.15 chance that 75 out of each 100 sandwiches are non-defective. Under design B3,there is 0.9 chance that 95 out of each 100 sandwiches…
- Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN, is given below. The average labor cost including overhead expenses is about $20 per hour. If production time required for the first unit is 10 hours, and the operation has a 95% learning curve, what is the cumulative (i.e. total) time for 10 units to be made? Group of answer choices 103.43 hrs 30.69 hrs 89.56 hrs 501.40 hrsA man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? c) Solve for the payback period d) Solve for the IRRA man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? a)Use present worth method b) Use future worth method c) Solve for the payback period d) Solve for the IRR
