Please anwer this question, Thank you The fixed cost of a new real estate company selling low-cost housing units in a relocationarea is roughly a million pesos a year. It costs the company approximately P40,000 to build ahousing unit. Originally, the company is selling a housing unit for P60,000 each. However, toattract more buyers, the company decided to sell each housing unit for only P55,000. Howmany housing units at the reduced price should be sold in a year for the company just to breakeven? Determine the profit/loss if 45 housing units are sold in a year.

Break even point is the point at which total revenue equals total cost. In other words, for the…

Answered: The fixed cost of a new real estate…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A Mechanical Engineer who was awarded a P450,000 contract to install the machineries of an oil mill failed to finish the work on time. As provided for in the contract, he has to pay a daily penalty equivalent to one fourth of one per cent per day for the first 10 days and 0.5% per day for the next 10 days and one per cent per day for everyday thereafter. If the total penalty was P60,750.00, how many days was the completion of the contract delayed? ANS: 26 days
The monthly demand for ice cans being manufactured by Mr. Cruz is 3,200 pieces. Witha manually operated guillotine, the unit cutting cost is P25.00. An electrically operatedhydraulic guillotine was offered to Mr. Cruz at a price of P275,000 and which will cut by30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruzbe able to recover the cost of the machine if he decides to buy now?
In manufacturing a kerosene stove, it is necessary to make two half-inch holes in the metal. If these are drilled with the help of a jig, each hole will require one minute. The jig will cost P40.00. The drill press operator receives P1.10 per hour. The holes could be made also on a punch press at the rate of 2 holes each for 5seconds. A die would be required at a cost of P80.00. The punch operator will receive P0.90 per hour. If 1,000 stoves are to be produced & the jig/die will have no scrap value, which method will you recommend on the bases of cost and on completion of work?
JRT Motors Inc. has been shipping its Suzuki engines in containers to avoid the necessary crating of the engines. JRT Motors Inc. will pay freight on container load of 40 tons, regardless of whether or not the container is completely filled with engines. Record shows that due to engine size, JRT Motors Inc. has shipped only 30 tons per container. Freight of container cost $3.00 per kilograms. If the engines are created so that they can be shipped at the rate of $3.50 per hundred kilograms with the freight bill computed only on the actual weight shipped. The cost of crating would be $50 per engine and would increase the shipping weight from 1500 kg to 1520 kg per engine. How much more economical shipping the engine in crates than in containers? Should JRT Motors Inc. ship the engines in crates or in containers?
The annual maintenance cost of a machine shop is P56,000. If the cost of making a forging is P60.00 per unit and its selling price is twice as the cost of making a forging, find the number of units to be forged to break-even.
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The monthly demand for ice cans being manufactured by Mr. Camus is 3200pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electricallyoperated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 andwhich cuts by 30% the unit cutting cost. Disregarding the cost of money, how manymonths will Mr. Camus be able to recover the cost of the machine if he decides to buynow?· A. 10 months· B. 11 months· C. 12 months· D. 13 months
Allina opens an exotic bakery. Her capacity for the month is eight hundred (800) Love Cherry Short cakes. On average, in a month, she pays a fixed amount for water, electricity, security and a loan of TTD100.00, TTD1,200.00, TTD2,700.00 and TTD4,000.00 respectively. In addition, she estimates that TTD50.00 more must be paid for each Love Cherry Short cake she makes and sells. If she sells one Love Cherry Short cake for TTD90.00. Identify and clearly state all variables used. Determine the following: Allina’s total cost and revenue functions. From part a) state the domain and range the total cost and revenue functions. Allina’s total cost when she produces and sells one thousand Love Cherry Short cakes. The value of the rational function of total cost and total revenue when no Love Cherry Short cakes are made and sold. Answer the following based on the problem set above. a. write a short reflective piece (NO MORE THAN 50 words per Problem Set…
A furniture manufacturer has an annual overhead cost of P120,000 plus 20% of the sales in pesos. Labor costs P20 per set and the materials cost P10. He has a maximum capacity of 1000 sets per month but expects to produce only 8000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even? Show solutions.
Smith, a U.S. citizen, has been working as an executive of a telecommunication company in U.S., and her annual salary in 2014 was US$220,000. Her salary was expected to remain unchanged if she continued to work in the company. At the end of the year 2014, however, she was recruited by a media company in Brazil, so she started working in Brazil from January 2015, making an annual salary of US$250,000. Assuming that the amount of her salary equals the amount of her contribution to the production in the company she works for, how much the annual U.S. GDP and GNP in 2015 was changed due to her job relocation? Clearly show the reasoning for your answer.
A farmer estimates that if he harvest his soybean crop now he will obtain 1,000 bushels whichhe can sell P150.00 per bushel. However, he estimates that this crop will increase by anadditional 1,200 bushels of soy beans for each week he delays harvesting, but the price will dropat a rate of P25.00 cents per bushel per week; in addition, it is likely that he will experiencespoilage of approximately 200 bushels per week for each week he delays harvesting. Whenshould he harvest his crop to obtain the largest total cash return, and how much will be receivedfor his crop at that time.

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