ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- **** I need help with question 4/5/6**** Nicholas Coffee roasts coffee the old-fashioned way (in gas-fired, rotating barrel roasters). It is selling its gourmet coffee beans at $20 per pound. Variable costs per pound are $8, and it has fixed cost of $840,000 per year. 1 Find its breakeven quantity in pounds/year, using the above data. 2 Nicholas is contemplating installation of digitally-controlled air-blown roasters. This will increase fixed cost to $1,200,000 per year, but it will lower variable cost to $5 per pound. If it installs the new roasters, what will be its breakeven quantity in pounds/year if it maintains its selling price at $20 per pound? 3 Express the breakeven quantity in (2) in dollar sales. 4 Nicholas does not believe it can sell more than 70000 pounds/year. What will it need to increase its price to if it is to breakeven at 70000 pounds per year, after installing the new air-blown roasting facilities? 5 What is the…arrow_forwardQ) Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory doesn’t achieve economies of scale?arrow_forwardproduction function is Q = An orange grower has discovered a process for producing oranges that requires two inputs. The min{2x1, x2}, where x₁ and x2 are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are w₁ = 5 and w₂ = = 2, respectively. The minimum cost of producing 140 units is (a) $980 (b) $630 (c) $1400 (d) $280 (e) $700arrow_forward
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