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- A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Matevial Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/anit Icalculated at 150% of direct labor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost makup Total price per unit $281 At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai O Not enou Information avalable O 1250un O $266.75nicSOLVE IT USING 1.) Present Worth Cost Method2.) Equivalent Uniform Annual Cost MethodA diagram is needed for (a) and (b)
- An engineer has the option of deciding the number of turbines for the power plant he/she works at. Fixed costs and potential power output range are as follows: Number of Turbines Total annual Corresponding power fixed cost (USD) output range (MW) 1 9600 0-300 2 15000 301-600 3 20000 601-900 Variable cost is 10 USD/MW and revenue is 40 USD/MW The breakeven point for 1-turbine system is: MW The breakeven point for 2-turbine system is: MW The breakeven point for 3-turbine system is: MW If the demand is below 300 MW, does it make sense to build a turbine? If the demand is 580 MW, how many turbines are needed? If the demand is 620 MW, would you use the 3-turbine system? If projected annual demand is between 580 and 660 MW, how many turbines should be built?Please solve part (d) and (e).According to Descartes's rule and Norstrom's criterion, the number of positive i* values for the following cash flow sequence is: 1 2 3 4 Revenue, $ Cost, $ 25,000 30,000 15,000 7,000 4,000 6,000 18,000 12,000 Select one Oa3 Ob.4 302 d.1
- BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.In decision making process, the most important role of engineering economist is to define feasible alternatives. Select one: True FalseDevelop a plot of the average cost per unit versusproduction quantity for the houseware applianceassembly department of Ace-One, Inc., that has afixed cost of $160,000 per year and a variable costof $4.00 per unit; use it to answer the followingquestions.(a) At what quantity is a $5 per unit average costjustified?(b) If the fixed cost increases to $200,000, plot thenew curve on the same graph and estimate thequantitythat justifies an average cost of $6 per unit.
- In most engineering economy studies, the best alternative is the one which:a. Will last the longest timeb. Is the easiest to implementc. Costs the leastd. Is the most politically correctThe pro great expert Hand written solution is not allowed.How is an engineering economic decision is more complex andmore significant to the company?