EBK ENGINEERING ECONOMY
17th Edition
ISBN: 9780134838229
Author: Sullivan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 7P
To determine
Calculate the estimated cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Fast pls solve this question correctly in 5 min pls I will give u like for sure
Svtik
The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1,192. If the current index value is 1,364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large is
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
The cost for a 200-horsepower (hp) pump, with controller, is $22,000. The cost estimate of a similar pump of 300 hp capacity, provided the exponentin the cost-capacity equation is 0.64, is closest to:a. $12,240b. $28,520c. $33,780d. $39,550
Chapter 3 Solutions
EBK ENGINEERING ECONOMY
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
Knowledge Booster
Similar questions
- As a manager have been asked to estimate the total cost of producing 40 engines in your company. Current engines have an output of 135-hp per engine. 7 years ago, a similar 180-hp engine cost was 4450 KD. Beside that due to extreme competition in the industry, the cost of an engine has decreased with 9% only for 3 intervals of time throughout this period. Total cost consists of engine cost, direct labor cost and other labor-related costs. Pertinent data are as follows: Direct labor cost per hour 20 KD per hour Factory overhead 150% of direct labor Packing costs 80% of direct labor Maintenance costs 10% of engine cost Cost-capacity factor 0.75 Past experience has shown that an 85% learning curve applies to the labor required producing these engines. Maintenance cost will be paid only once at the beginning of the second year. Use the estimated time to complete the 40th engine for the purpose of estimating the direct labor cost. The time to complete the first engine has been estimated to…arrow_forwardEight years ago when the relative cost index was 60, a 10 MW power generation facility cost $5M to build. Today the cost index is 110. What would the cost be to produce a 25MW facility today if the power sizing factor is 0.6?arrow_forwardHeatAll, manufacturer of radiant heaters (great for heating outdoor dining areas, a “hot” item these past few years!), finds that it costs them $160 to produce each heater. The company has total fixed costs of $5 million. If the company manufactures 250,000 units, what is the unit cost?arrow_forward
- Garber Furniture manufactures beds selling for $529 each. Variable costs per unit are $187 for direct material, $165 for direct labor, $44 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs for production overhead are $200,000 and for selling and administrative costs $124,000. What is the number of units required to breakeven? 2,436 units 2,492 units 1,831 units 2,746 units 612 units Onone of the above / listedarrow_forwardGH is preparing its maintenance budget for the next period. Based on previous experience it has found that there is a linear relationship between production volume and maintenance costs. The following cost information has been obtained: Production volume (units) Cost £ 1,600 23,200 2,500 25,000 The production cost for a production volume of 2,700 units would be:arrow_forwardEconomics In one company it was calculated that producing 20 units 7 years ago would cost the company $11,000 Estimate the cost of producing 29 units today if the x exponent factor in the formula of cost capacity equation is 0.16 and the index 7 years was 140 and updated to 170 today.Solve with clear steps.arrow_forward
- a manufacturer produces certain items at a labor cost of 150 each, the material cost is 75 each, and the variable cost of 2.50 each. if the item has a unit price of 500, how many number of units must be manufactured each mont for the manufacturer to break even if the monthly overhead of 299,750?arrow_forwardThe total plant cost for manufacturing CO2 warning devices that have a compact gas detector and a signaling unit is $1,154,400. If the overall costfactor for the plant was 2.61, the delivered equipment cost was closest to:a. $442,300b. $501,200c. $593,700d. $613,900arrow_forwardThe costs of producing a certain commodity consist of 125.00 per unit for labor and material cost and 320.00 per unit for other variable cost. The unit can be sold at 1,200.00. If the production capacity per month is 5,200 units, what maximum fixed amount can the company spend each month of breakeven? Answer: 3,926,000.00 Explain every process.arrow_forward
- The ABC Manufacturing Company incurs an annual fixed cost of $100,000 to maintain its production facilities. Additionally, the variable cost per unit produced is $10. If the company produces and sells 5,000 units in a year, what is the total annual cost?arrow_forwardThe cost of constructing an 8000 ft2 warehouse was $400,000. The ENR construction cost index was 6770 at that time. The cost of constructing asimilar building using an ENR index of 9088 is closest to:a. less than $450,000b. $537,000c. $672,000d. more than $700,000arrow_forwardIt is assumed that the machine handles a flow rate of 0.5 million gallons per day. The cost of the machine is $1.24 million in 2020. The correlation exponent is 0.14. The cost index has been updated from 156 to 221 this year. The cost today for a flow of 2.3 million gallons per day is: a. $8,752,042 b. $2,175,081 c. $5,347,061 d. $3,562,455arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning