A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8000 units. Steel costs P3.80 per kg. while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams. When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and the operator is P10.80 per hour. How much is the cost per unit if aluminum is used?
Q: A company that manufactures high-speed submersible rotary-indexing spindles is considering an…
A: (a) The time period is indicated by ‘n’. The rate of return is indicated by ‘i’. The future worth…
Q: Two membrane systems are under consideration for treating cooling tower blowdown to reduce its…
A: Low-pressure machine fixed cost (FCL) is $465. Operating cost (OPL) is $485. Production (PL) is…
Q: An IE works in the automation department of a surgical equipment manufacturing company that produces…
A: Solution: Let n cameras are required to be assembled EUAC of make option = 175000*(A/P,12%,5) +…
Q: Charlie’s Truck Repair and Service has a new contract that requires him to purchase and maintain new…
A: Table 1 shows the cash flow of different projects.
Q: machine part to be machined may be made either from an alloy of aluminum or steel. There is an order…
A: Given the order = 8000 units Cost of steel per kg = 3.80 per kg Per unit weight of steel = 110gms…
Q: A window frame manufacturer is searching for ways to improve revenue from its triple-insulated…
A: Investment: The action in which money is invested in making a profit.
Q: The PW method allows analysis over the respective alternative lives. Select one: O True O False
A: Answer is given below
Q: 7-4.In a cold storage plant, it is desired to determine whether to use insulation two inches thick…
A: The cost without insulation is 96 per square foot per year. The cost of two-inch insulation is…
Q: Pizza Bera Sedap is a pizza making company. Currently, its process makes complete pizzas, fully…
A: For Process 1: FC1=RM 18,000 VC1= RM 1.85 per pizza. Therefore, the total cost for x pizzas will be:…
Q: A contractor won a bid to repave so many km. of badly damage concrete road in the south. He is…
A: • Calculate the total fixed cost and variable cost of the equipment, • The depreciation of the…
Q: A local company assembling stereo radio cassette produces 312 units per month at a cost of Php 800…
A:
Q: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded with RFID…
A: Annual Worth (AW) Analysis is the term used to represent the consistent annual worth of all…
Q: A chemical engineer is considering two sizes of pipes for moving distillate from a refinery to the…
A: The given information can be tabulated as follows.
Q: The ore of a gold mine in the mountain province contains, on the average, 0.5 Gram of gold per ton.…
A: Profit is the difference between total revenue earned by the business and total cost incurred. Most…
Q: Process A has a fixed cost of $195,000 per year and a variable cost of $41 per unit. For Process B,…
A: The fixed cost of A (FCA) is $195,000. Variable cost of A (VCA) is $41 per unit. Firm B can produce…
Q: A diesel engine uses Type A filter and high-grade lubricating oil costing P5.50 per liter. With this…
A: Cost analysis is the study of cost behaviour in relation to numerous production parameters such as…
Q: make an item in-house, equipment costing $250,000 must be purchased. It will have a life of 4 years,…
A: Breakeven point is that point where there is no profit no loss or revenue is equivalent to expenses.…
Q: A process control manager is considering two robots to improve materials-handling capacity in the…
A: The incremental rate of return can be defined as a calculation of a financial return to an investor…
Q: EP Electric has identified two new methods to treat its cooling water. Alternative I (for inflow)…
A:
Q: The cost of producing a small transistor radio set consists of P 230.00 for labor and P 370.00 for…
A: Break even point is the point where firm produces the output and sell those products which recover…
Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…
A: Salvage value is the assessed book value of a resource after deterioration is finished, in light of…
Q: An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt…
A: Table 1 shows the cash flow of different projects. MARR (i) is 6 percent. The time period for…
Q: The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1…
A: Cost of machine 1 (C1) is $123,000. Annual cost (AC1) is $5,000. Operation cost (OC1) is $24 per…
Q: Handheld fiber-optic meters with white light polarization interferometry are useful for measuring…
A: The balance point known as “break-even” results in neither a profit nor a loss. Any value below the…
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Future value can be calculated by using the following formula.
Q: The manager of a canned food processing plant must decide between two different labelling machines.…
A: Assuming that a firm is confronted with two totally unrelated tasks, the determination of one of…
Q: An engineering consulting firm measures its output in a standard service hour unit, which is a…
A: a. Given, Variable costs(VC) = $62 per hour Selling price(SP) = $85.56 per hour Fixed costs(FC) =…
Q: A telephone switchboard 150 pair cable can be made up with either enameled wire or tinned wire.…
A: Enameled Wire Tinned Wire Soldering Cost 150 Pair 1.75 1.25 Cables per Lineal Foot…
Q: True or False If breakeven analysis is conducted with PW analysis for different MEAs, it doesn’t…
A: Any firm will run at a break-even point as it is being able to cover its variable costs and is not…
Q: A cement kiln with production capacity of 140 tons per day (24 hours) of clinker has at its burning…
A: Economics is the branch of social science that deals with the production, distribution, and…
Q: The manager of a canned-food processing plant has two labeling machine options. On the basis of a…
A: Table 1 shows the cash flow.
Q: In a cold storage plant, it is desired to determine whether to use insulation two inches thick or…
A: The cost without insulation is 96 per square feet per year. The cost of two inch insulation is…
Q: a machine costs 80,000 and the salvage value after 20 years is 20,000. find the equivalent annual…
A:
Q: The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water…
A: Annual worth can be calculated as follows:
Q: An engineer has been offered an investment opportunity that will require a cash outlay of $40,000…
A: Time period is indicated by ‘n’ and the interest rate is indicated by ‘I’. Present worth (PW) can be…
Q: A group of private investors borrowed $34 million to build 200 new luxury apartments near a large…
A: Sensitivity analysis is used to find that when one factor changes then how does other dependent…
Q: Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12…
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…
Q: GMA will be visiting an automobile plant. It was decided by the plant management that they must…
A: Boysen Cost of Paint = 70 per gallon Covers = 350sq. ft per gallon time period = 5 years applied…
Q: The supervisor ofa community swimming pool has developed two methods for chlorinating the pool. If…
A: We are going to use Present Value concept to answer this question.
Q: Power cost is P2 per kWh. If money is worth 20%, how many hours per year would the motors have to be…
A: The breakeven point is the level of production at which the costs of production equal the revenues…
Q: A new mechanical engineer produces a certain design at a labor cost of P16.2 per piece, material…
A: The money left over once subtracting the variable prices of making a product is understood as…
Q: Leroy purchased an Al-based robotics system with the first cost of $345,000, an AOC of S148,000 per…
A: Given: 3 years: First cost=$345000, AOC=$148000, Salvage value=$140000 5 years: Increase in cost in…
Q: Revcon Products has two subcontractor bids to automate a composite winding process. Process A will…
A: We know that, Note : Option C and D automatically get rejected because they include fixed costs…
Q: ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The…
A: Brush Alternative EAUw = Initial Cost (A/P , i , n ) + AOC ( A/G , i , n ) + Salvage Value ( A/F , i…
Q: A manufacturing process at Simplicity XP has a fixed cost of $40,000 per month. A total of 100 units…
A: FC = 40,000 / month VC = 3000 / day cost of 100 units in 1 day = 3000 / day 1 unit cost = 3000 /…
Q: The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A: The total cost can be calculated as follows: TC=FC+VC=100,000+23+37+1×n=100,000+61n
Q: A company sells an item for P10 each. If the manufacturing cost is P60k per month and the labor is…
A: Break even point (units)=Fixed costSells per unit - Variable cost per unit Here, Fixed cost = 60,000…
Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…
A: AC1 = Annual cost of old motortruck, and AC2 = Cost of new motortruck We know that, AC1 = (C1)i +…
Q: For the two alternatives, demonstrate that the sum of the incremental cash flow series (Z − X) over…
A: Table 1 shows the cash flow: Incremental cash flow between alternatives Z and X can be calculated…
Step by step
Solved in 2 steps
- A vertical oil well has been drilled and completed. The productive zone is between the depths of 2,800 and 2,900 feet, you can assume there is oil in the entire thickness (gross = net). The average porosity is 10%, average water saturation is 20% and the oil formation volume factor is 1.3 RB/Stb. Other reservoirs with similar properties have drainage areas of 40 acres and the recovery factor 10.47305% (it is known with extreme precision!) a) Compute STOIIP and ultimate recovery, using the formals presented in lecture b) This well will also have a gas oil ratio (GOR) of 800 scf/bbl, how much gas is expected to be produced from this well?The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. Itsold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and salesincreasing by 10% each year until it was last sold in 1990 (when it was made illegal). Assume aninterest rate of 12% per year. Assume sales were made at EOY. What was the worth of these cashflows in 1980? Show in standard factor notation and show the cash flow diagrams.Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?
- Prob.#1 At the Motorola plant in Mesa, AZ, it is desired to determine whether one-inch-thick insulation or two-inch-thick insulation should be used to reduce heat loss from a long section of steam pipe. The heat loss from the pipe without any insulation would cost $2.00 per linear foot per year. The one- inch-thick insulation option will eliminate 88% of the heat loss and will cost $0.60 per foot. Two-inch insulation will eliminate 95% of the heat loss and will cost $1.10 per foot. The steam pipe is 1,000 feet in length and will last 10 years. MARR is 6% per year. Which insulation thickness should be recommended? Apply Equivalent Uniform Annual Worth technique. please show all work for each type.In the design of a jet engine part, the designer has a choice ofspecifying either an aluminium alloy casting or a steel casting. Either materialwill provide equal service, but the aluminium casting will weigh 1.2 kg ascompared with 1.35 kg for the steel casting.The aluminium can be cast for $. 80.00 per kg. and the steel one for$ 35.00 per kg. The cost of machining per unit is $. 150.00 for aluminiumand $. 170.00 for steel. Every kilogram of excess weight is associated witha penalty of $. 1,300 due to increased fuel consumption. Cost of using aluminium metal for the jet engine part?For these two AW relations, the breakeven point QBE in miles per year is closest to:AW1=-23,000(A/P,10%,10) + 4000(A/F,10%, 10) - 5000 - 4QBEAW2 =-8000(A/P,10%,4) - 2000 - 6QBEa. 1984b. 1224c. 1090d. 655
- Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUACThe surface are of a certain plant that requires painting is 8,000 sq. ft. Two kinds of paint are available whose brands are A and B. Paint A costs P1.40 per sq. ft. but needs renewal at the end of every 4 years, while paint B costs P1.80 per sq. ft. If money is worth 12% effective, how often should paint B be renewed so that it will be as economical as Paint A?
- 7 You received a memo that you are appointed as the team leader for a new commercial building project. Based on the estimation, if your team will be using a steel, it will cost 80,000 per month and 145000 cost if glass For the plan A, it has an annualmaintenance cost is 25000, 1000 repair cost every 2 years and a salvage value of 3000 after 15 years For the plan B, the repair cost is 3500 every 3 years, annual maintenance cost of 30000 and a salvage value of 1000 after 20 years. Compute for the capitalized cost if the money is worth 8% compounded annually and choose the best material for the project.CC PlanA = (2 decimal placesCC Plan B = (2 decimal places)Please show both and irr using trial and error method only pls. Thanks.The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.Customers arrive at the drive-up window at the rate of12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It isassumed that arriving cars would be equally divided between both windows. The operations officer estimates thateach minute’s reduction in customer waiting time wouldincrease the bank’s revenue by $2000 annually. Should thesecond drive-up window be installed? What other factorsshould be considered in the decision besides cost?