Problem statementA construction company is planning their projects forthe year 2023. The company is considering theconstruction of 20 buildings, each is 3,000 m². In 2018,they have built 8 similar buildings but with smallerareas, and the material costs associated with those 8buildings are shown in the following table:Building #Area (m²) Cost (S)123456781,430 350,3501,475 358,3261,655 385,9221,790399,3871,961419,0042,015 427,6962,375 456,1262,533 461,765The materials cost index values are as shown in thefollowing table:Year Cost index2017 3212018 3322019 3482020 3682021 3792022 3982023 406In 2019, the company began constructing larger units(3,000 m² units compared to those in 2018 as shown inthe first table). The labor hours required to completethe first 3,000 m² unit was 24,000 hours but the laborhours decreased exponentially with time due to theexperience gained by workers at a 90% learning slopeuntil reaching the 15th unit, after which a steady-statewas reached. Assume the 2023 average labor wage is$20 per hour and the Company's fixed annual cost(overhead) is $2,300,000.(a) What is the breakeven selling price per unit?(b) What is the selling price per unit assuming thecompany wishes to earn 10% profit on top of the totalcosts incurred?

The break even point is defined as the one where the revenue that the firms generate is equal to the…

Problem statement A construction company is planning their projects for the year 2023. The company is considering the construction of 20 buildings, each is 3,000 m². In 2018, they have built 8 similar buildings but with smaller areas, and the material costs associated with those 8 buildings are shown in the following table: Building #Area (m²) Cost (S) 1 1,430 350,350 1,475 358,326 1,655 385,922 1,790 399,387 1,961 419,004 2,015 427,696 2,375 456,126 2,533 461,765 The materials cost index values are as shown in the 23456 3 5 7 8 following table: Year Cost index 2017 321 2018 332 2019 348 2020 368 2021 379 2022 398 2023 406

Problem statement A construction company is planning their projects for the year 2023. The company is considering the construction of 20 buildings, each is 3,000 m². In 2018, they have built 8 similar buildings but with smaller areas, and the material costs associated with those 8 buildings are shown in the following table: Building #Area (m²) Cost (S) 1 1,430 350,350 1,475 358,326 1,655 385,922 1,790 399,387 1,961 419,004 2,015 427,696 2,375 456,126 2,533 461,765 The materials cost index values are as shown in the 23456 3 5 7 8 following table: Year Cost index 2017 321 2018 332 2019 348 2020 368 2021 379 2022 398 2023 406

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

The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000 7000 6000 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 40 Units (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR Percent of capacity= 50 60 TC If the selling price per unit is $50, and the variable cost per unit is $40: FC 70 80 90 100 enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)
Reven costs Co Fevenue 100 300 400 Figure 2 14) Based on the information in Figure 2, the total fixed costs are equal to: (a) £100level of output. (b) £2. (c) £100 * level of output. (d) £100. (e) £500.
Economics Joey is opening a coffee shop and he needs to decide how many baristas he should staff. He did some analysis of other coffee shops and he determined that this is an M/M/s system. He expects customers to arrive at the rate of 6 per minute and the service rate will be 3 customers per minute per barista. He estimates the cost of waiting Cwto bee60 and the cost of service Cs will bee14 per hour per barista. (a) What is the minimum number of servers this system must have? (b) What number of servers will minimise the total cost.
Task Description Precedence Time (days) cost($) crash time (days) Per day revised cost Preparation of drawings and permits - 14 72,500 10 10,000 Calling and letting of tenders - 68 166,750 66 23,000 Site preparation and excavation A 6 116,000 4 16000 Pouring the foundation A 24 250,000 24 - Framing C,D 40 145,000 30 20000 Plumbing and electrical work D 18 159,500 12 22000 Interior finished F 16 108,750 12 15000 Exterior finishes E,G 22 175,000 22 - Installing and commissioning new machines B,E 34 101,500 30 14000 Finishing touches and final work through H,I 32 64,000 32 - Calculate the minimum time and associate cost in which the project could be completed
A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost Method
（D）Detailed calculation steps
The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.
A manufacturing plant wishes to buy a new equipment so the purchasing department did some research on different types of this equipment. In the monthly meeting, the purchasing department presented a report about the two types of equipment that they have found. Pertinent data are as follows: Туре А Туре В First cost P250,000 P350,000 Annual operating cost 30,000 22,000 Annual labor cost 52,000 34,000 Insurance and property taxes 3% 3% Labor/Payroll taxes 4% 4% Estimated life 10 10 If the minimum required rate of return is 19%, 1. What is the annual worth of Type A? [ Select ] 2. What is the annual worth of Type B? [ Select ] 3. Which machine should be selected? [ Select ] >
Table for Problem 3-26 TABLE Equipment Cost-Capacity Factor New Design Size Reference Size Unit Reference Cost Two boilers $300,000 $400,000 $106,000 6 MW 0.80 10 MW Two generators Tank 9 MW 6 MW 0.60 80,000 gal 91,500 gal 0.66
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each What would be the profit(loss) be if 1000 unit were sold in month?
Pls solve it, subject-engineering economics and costing
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Month and Cleaned Costs April 240 S6,800 May 305 7,680 June 325 8,310 July 275 7,200 August 220 6,550 September 200 5,760 Оctober 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 3,955 v + $ 13.4 v X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 9,181 x + $ 13.4 x x Adjust the equation developed in…