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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Chapter 5, Problem 63P
(a):
To determine
Annual worth method.
(b):
To determine
Calculate the
(c):
To determine
Other factors.
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A small company manufactures a certain product. Variable cost are $20 per unit and fixed cost are $10,875. The price-demand relationship of this product is P = -0.25D + 2550, where P is the unit sales price of the product and D is the annual demand. Find the Total Cost, Total Revenue and Profit.
A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (CF ) is $73,000 per month, and the variable cost (cv) is $83 per unit. The selling price per unit is p = $180 − 0.02(D). For this situation, (a) determine the optimal volume for this product and confirm that a profit occurs (instead of a loss) at this demand. (b) find the volumes at which breakeven occurs; that is, what is the range of profitable demand? Solve by hand and by spreadsheet.
A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is
P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV
Revenue = Demand x Price, TR = D x P
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b) Find the breakeven quantity
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Chapter 5 Solutions
Engineering Economy, Student Value Edition (17th Edition)
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