Engineering Economy
Engineering Economy
null Edition
ISBN: 9781259253294
Publisher: MCGRAW HILL BOOK COMPANY
Question
Chapter 1, Problem 10P
To determine

Ethical viewpoint.

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UBJECT: ENGINEERING ECONOMICS Show the complete solution. The final answer is already provided.
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  • You work for Bellevue Window Products. While performing an analysis for a new window product, you found a report from last year that provided the following information regarding the manufacture of a similar product: annual production rate = 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company’s profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?
    Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, what is the equivalent uniform annual cost of Equipment B?   a. P126,070 b. P124,030 c. P129,850 d. P130,870
    The economic order quantity of Inc. is 1,000 unit.  They sold their sole product for a selling price of P5. It takes P20,000 a year for Inc. in ordering 1,000 units per transaction. Carrying cost is P4 per unit per year. The lead time for this product is one week. How much sales revenue should Inc. have for this economic order quantity to be plausible? (Use 360 days a year)
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