Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100 can handle twice the volume of a VMIC-50.) Cost of VMIC-100 today $250,000 Cost of VMIC-50 5 years ago $95,000 VMIC equipment index today = 350 VMIC equipment index 5 years ago = 235
Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100 can handle twice the volume of a VMIC-50.) Cost of VMIC-100 today $250,000 Cost of VMIC-50 5 years ago $95,000 VMIC equipment index today = 350 VMIC equipment index 5 years ago = 235
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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