There are a variety of costs to be considered in an engineering economic analysis. These costs are differ in their frequency of occurrence, relative magnitude, and degree of impact on the study. Explain any FOUR (4) type of costs that associated with products or services in construction activities. OPEN-ENDED C2
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- BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.ENGINEERING ECONOMICSIt costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If money is worth10%, how much would it pay to spend immediately to reduce the annual cost to P100,000?a. List the given variablesb. Formula & Complete solutionb. An engineer can do required computations in 3 hours or she can delegate the work to an engineering aide. If the work is delegated, it will take 0.75 hour to explain the computational procedure and 0.50 hour to check the results. The actual calculations will take 4 hours to do if done by the aide. If the engineer receives a salary of $34,000 per year and the aide $17,200 per year, what are the comparative costs for each of the methods for a working year of 2080 hours?
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