Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Khaled will rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 500dhs per month. Khaled has alreadytaken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per unit. He will hireworkers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month.Required:1-2- Calculate the total Fixed cost- 90003- Calculate the total variable cost per unit= 324- If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly?= 415- If Khaled to earn a profit equal to his current salary, for how much he should sell the unit?=6- What is the fixed cost per unit for maximum production?=7- What is the total variable cost for maximum production?=8-Ilf Khalid set the selling price for 70DHS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage=9- If Khalid set the selling price for 70DHS on max production and managed to reduce the total variable cost by 2% what is the profit increase percentage=

Fixed cost = Small factory rent + Utility + Equipment rent + Advertising cost Fixed cost…

aken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per vorkers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month. Required: Calculate the total Fixed cost 9000 Calculate the total variable cost per unit 32 the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly? 41 Khaled to earn a profit equal to his current salary, for how much he should sell the unit?= What is the fixed cost per unit for maximum production?= What is the total variable cost for maximum production?= Khalid set the selling price for 70DHS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage=

aken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per vorkers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month. Required: Calculate the total Fixed cost 9000 Calculate the total variable cost per unit 32 the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly? 41 Khaled to earn a profit equal to his current salary, for how much he should sell the unit?= What is the fixed cost per unit for maximum production?= What is the total variable cost for maximum production?= Khalid set the selling price for 70DHS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Andie is considering leaving her job as attorney to pursue her passion by starting a dog grooming business. She currently takes home $6000 per month from her job. She pays $2000 per month to rent her house . if she were to start the dog grooming business, she would operate it out of the currently unused room at the back of her house and she would work at it fulltime. She would hire additional workers and pay them a total of$3000 per month , while spending $1000 per month on materials . she already has everything else she needs to start the business. What are the monthly economic costs of Andies potential dog grooming business.
Dexter set up a computer repair business out of his home office. Based on the square footage of his office, he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45 and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses per repair and charges a flat $49 fee per repair for his labor. 3a. How many computers does Dexter need to repair each month to break even?__________3b. What is Dexter’s profit / loss if he only repairs 8 computers in a month?__________3c. What fee would Dexter need to charge to break even at 8 repairs?
Your local pet café has the following costs: $3,000 per month in rent, $5,000 per month in wages, $3,000 per month in food and supplies, and $1,500 per month in insurance. All of the costs of production, excluding their rent and insurance, can vary, depending on how many coffees are sold at the café. The pet café's monthly sunk cost is: Type your numeric answer and submit
Sara has decided to quit her corporate job and live her dream by opening up her own food truck selling her "famous" tacos. She expects to earn $90,000 per year once she gets a loyal following. To run her business, she will need to get a food truck, equipment, and a license. The food truck will cost her $800 per month to lease, equipment rentals are $150 per month and an annual license is $300. Sara will also be taking a large pay cut to follow her dream. Her corporate job's annual salary is $100,000 annually. What is Sara's economic profit?
You are a manager at Glass Inc.—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs $60, each unit of capital is $20, and your encapsulated windows sell for $12 each. Given this information, what is your optimal labor and output decision?
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out- of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Please enter your answers as whole numbers with no decimal places (ie. 5000 or $5000 not 5000.00 or "Five thousand dollars"). If you want to enter a negative number use a negative sign "-" and do not use parenthesis (ie. -2000 or -$2000 not (2000) or (-$2000)). What is Pat's accounting profit? What is Pat's economic profit? Did Pat make the right decision by becoming a personal trainer? (Yes or No)
Jack decides to quit his job paying $28,000 a ycar and start his own business manufacturing and selling Extreme skatcboards. Jack invests $40,000 of his own moncy from his savings account, which had been earning him $2,000 in interest. The lease on the space Jack is renting costs him $10,000 a year. Jack's utilities (water, clectricity, ctc.) cost him roughly $5,000 a year. The cost of buying the materials for the skateboards is $20,000 a year. To assist him in maintaining the store and production facility, Jack hires Sara, part-time, at a salary of $10,000 a year. Jack knows his labor, skills and knowledge (entreprencurial abil $10,000, Revecnuc for Extreme skateboards was $85,000. of the skateboard industry is worth Compute Jack's accounting profit and cconomic profit. Will Jack continuc to operate his own extreme sports shop or will he quit and do something clsc? Explain
You run a school in Florida. Fixed monthly cost is $5,998.00 for rent and utilities, $6,363.00 is spent in salaries and $ 1,412.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $695.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,061.00, salaries to $6,801.00 and insurance to $2,112.00 per month. Variable cost per student will increase up to $190.00 per month. However you can charge $1,072.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places.
Problem 6.1. Tommy runs a small metal shop fabricating custom gates and other decorative work. Tommy has one assistant paid $48,000 per year, annual rent for the shop of $20,000 per year, and annual materials cost of $80,000 per year. He has $100,000 of his own funds invested in equipment (tools, furnace, anvils) that could earn him $10,000 per year if alternatively invested. Total annual sales revenue for the firm's products is $300,000. Tommy could earn 875,000 per year working for a competing metal firm, and he estimates his entrepreneurial skills to be worth $5,000 per year. (a) Which of the following are explicit costs for the firm? Rent Yes IAb Assistant Yes Equipment Yes Entrepreneurial skill (b) Calculate the accounting profit for Tommy's firm. (c) Calculate the economic profit for Tommy's firm. (d) and If these figures cover all costs and benefits, at what salary would Tommy close his business and work for a competitor? go
You run a school in Florida. Fixed monthly cost is $5,909.00 for rent and utilities, $5,531.00 is spent in salaries and $1,775.00 in insurance. Also every student adds up to $98.00 per month in stationary, food etc. You charge $683.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,500.00, salaries to $6,043.00 and insurance to $2,370.00 per month. Variable cost per student will increase up to $158.00 per month. However you can charge $1,162.00 per student. How much do you currently charge per student?
You run a school in Florida. Fixed monthly cost is $5,837.00 for rent and utilities, $6,127.00 is spent in salaries and $1,459.00 in insurance. Also every student adds up to $103.00 per month in stationary, food etc. You charge $684.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,946.00, salaries to $6,128.00 and insurance to $2,040.00 per month. Variable cost per student will increase up to $166.00 per month. However you can charge $1,042.00 per student. How much do you currently charge per student? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.