EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 9780100255050
Author: Blank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Company E manufactures regulators at a labor cost of $90 per unit and material cost of $300 per unit. The fixed charges on the business are $15,000 per month and the variable costs are $20 per unit per month. If the regulators are sold to retailers at $600 each, how many units must be produced and sold per month to breakeven?
Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 24% and fixed cost by 13% but sales will increase to 12490 units per year. At what selling price do the break even occurs for the new design?
complete solution needed
Company A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost. Company B has fixed expenses of $6,000 per year and can produce the same product at a $0.60 variable cost per unit.
At what number of units of annual production will Company A have the same overall cost as Company B? (i.e., find the breakeven point)
Knowledge Booster
Similar questions
- The Uniqlo, a retail company, sells a product at P400 per unit, selling all that is produced. Fixed cost is P250,000 and variable cost per unit is P200.arrow_forwardProduct X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 23% and fixed cost by 15% but sales will increase to 13362 units per year. At what selling price do the break even occurs for the new design?arrow_forwardFEMA (Federal Emergency Management Agency) has ordered 25 specialized test units capable of field checking 15 separate elements in potable water inemergency situations. Thompson Water Works, Inc., the contractor, took 200hours to build the first unit. If direct and indirect labor costs average $50 perhour, and an 80% learning rate is assumed, estimate (a) the time needed to complete units 5 and 25, and (b) the total labor cost for the 25 units.arrow_forward
- In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some examples of fixed costs that change over time.arrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is 112000 units. (Round your response to the nearest whole number.) Part 3 b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month? The monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month is $enter your response here. (Round your response to the nearest dollar and include a minus sign if necessary.)arrow_forwardPLEASE PROVIDE A COMPLETE AND CORRECT SOLUTION AND ANSWER ASAP. The fixed cost at Harley Motors is $5 million annually. The main product has revenue of $89 per unit and $45 per variable cost. Estimate te following (A) Breakeven quantity per year; (B) Annual profit if 100,000 units are sold, and if 200,000 units are soldarrow_forward
- The fixed cost at Harley Motors is $5 million annually. The main product has revenue of $89 per unit and $45 variable cost. Estimate the following: (a) Breakeven quantity per year; and (b) annual profit if 100,000 units are sold, and if 200,000 units are sold.arrow_forwardFor a motor to operate a pump, a design engineer must choose the horsepower. Horsepower rating is a design characteristic that can vary from 10 to 40 horsepower. The motor will cost $120 per year to operate, plus $0.60 per horsepower. The running expenses of such motors will be $0.055 per horsepower-hour divided by the horsepower rating. Each year, 9,000 horsepower-hours will be required. Determine how much horsepower should be supplied to keep the overall yearly cost to a minimal. Demonstrate that your entire cost each year has been reduced.arrow_forwardDetermine the breakeven point in terms of number of units produced per month and draw its corresponding break-even chart using the following data:➢ Selling price/unit 600 PhP➢ Total monthly overhead expenses 428,000 PhP➢ Labor cost 115 PhP➢ Cost of Materials 76 PhP➢ Other variable 2.32 Phparrow_forward
- 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)arrow_forwardA company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C Sketch the Break – Even chart each three locationarrow_forwardA suburban lawn-care company has nonincremental fixed costs of $6,000 per month. It currently services 400 lawns per month at an average price of $30 per lawn. The company’s variable costs are $15 per lawn. If the company’s total sales increase beyond 550 lawns per month (i.e., 150 more lawns than are currently serviced), new equipment would have to be purchased that would involve incremental fixed costs of $760 per month. (a) Calculate the breakeven sales level for a $5 per lawn price increase. Show your work. (b) Calculate the breakeven sales level for a $5 per lawn price decrease. Show your work. (Hint: consider the possibility of incremental fixed costs.) (c) Data from past price changes indicates that the company can expect a price elasticity of –1.2. Based on this price elasticity, calculate the unit sales change that the company could expect from a $5 price increase. Then calculate the unit sales change that the company could expect from a $5 price decrease. Show…arrow_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 LearningManagerial 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