ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Nonearrow_forwardA company plans to design and build transport vehicles for the Army. The cost for the design is $10M. The cost for the test prototype is $2M. The cost to produce and test each production vehicle is $0.5M. What is the non-recurring cost? What is the recurring cost per vehicle? What price per vehicle must the company sell the vehicles to the government to make $50K profit per vehicle if the company sold 50 vehicles? 100 vehicles? Why does the price per vehicle go down when production goes up?arrow_forwardSuppose that two certain cars have the following average operating and ownership costs. Average Costs per Mile Ownership Operating $0.24 $0.20 $0.68 $0.25 If you drive 20,000 miles per year, by how much does the total annual expense for Car A exceed that of Car B over nine years? Car A Car B The total annual expense for Car A exceeds that of Car B by $ (Round to the nearest dollar as needed.) over nine years. Total $0.92 $0.45arrow_forward
- Mirtha owns an online jewelry store that specializes in earrings. In March, she sells 50 pairs of earrings priced at $15. The cost of materials to create the 50 pairs of earrings was $100. The website she uses to sell her wares costs her $10 a month, and she is also charged 4% on each sale by the company that processes debit/credit card purchases. Which of the following best represents Mirth’s total cost? Group of answer choices A)The $750 Mirtha earned from earring sales minus the materials ($100), online website charge ($10), and payment processing charge (4%) B)The sum of the materials ($100), website charge ($10), and 4% payment processing charge (4%) C)The cost of all the materials used to create the earrings, $100 D)The costs of materials minus the costs it takes to run her business through the online store, in this case the $10 website charges and the 4% payment processing chargearrow_forwardAb6arrow_forwardPlease answer the following question in the picturearrow_forward
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