Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 3, Problem 40FE
To determine
Maximum acceptable price.
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A car rental agency is considering a modification in its oil change procedure. Currently, it uses a Type X filter, which costs $4.75 and must be
changed every 9,000 miles along with the oil (5 quarts). Between each oil change, one quart of oil must be added after each 500 miles. The
proposed filter (Type Y) has to be replaced every 6,000 miles (along with 5 quarts of oil) but does not require any additional oil between filter
changes. If the oil costs $1.19 per quart, what is the maximum acceptable price for the Type Y filter?
Choose the correct answer below.
A. The maximum acceptable price for the Type Y filter is $29.34.
B. The maximum acceptable price for the Type Y filter is $14.67.
C. The maximum acceptable price for the Type Y filter is $40.45.
OD. The maximum acceptable price for the Type Y filter is $22.01.
A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate
relationship between price and demand is
p = 38+ (2,700/D) - (5000/D²) for D>1
The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit.
What is the number of units that should be produced and sold each month to maximize profit?
A 71
B 60
с 50
D 25
A plant has sufficient capacity to manufacture any combination of four different products (A, B, C, D). For each product, time is required to be invested in four different machines, which is expressed in hours per kilogram of product, as shown in the following table as shown in the following table:
(attached image)
Each machine has an availability of 60 hours per week. Products A, B, C and D can be sold at $9, $7, $6 and $5per kilo, respectively. Variable labor costs are $2 per hour for machines 1 and 2, and $3 per hour for machines 3 and 4. The material costs for each kilogram of product A are $4. The material costs for each kilogram of products B, C, D and D are $4 each kilogram of products B, C and D are $1.
What needs to be done:Formulate a profit-maximizing PL model given the maximum demand per product shown in the table (there are 16 variables).
Note:
Do it by hand, no computer
Chapter 3 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 3 - A green (environmentally friendly) office building...Ch. 3 - You are planning to build a new home with...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - The capital investment cost for a...Ch. 3 - The capacity of a switch grass-fueled ethanol...Ch. 3 - Prob. 16PCh. 3 - The time to assemble the first unit on a...Ch. 3 - Prob. 18PCh. 3 - For the data below (3.4 .3) a. Find the regression...Ch. 3 - A company that manufactures shuttle cars and mines...Ch. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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