Question 1 [25 marks] Using your own words, write an explanation for the following terms in engineering economics: (a) Opportunity cost with an example [5 marks] (b) Arithmetic gradient series with a simple cash flow diagram [5 marks] (c) Equilibrium price with a simple graph [5 marks] (d) Mutually exclusive alternatives with an example [5 marks] (e) Advantages and disadvantages of Gantt chart [5 marks] Question 2 [25 marks] (a) Using your own words explain the payback analysis and write its advantages and disadvantages. [13 marks] (b) An import company buys foreign-made toy train sets at $25 per unit. The fixed cost of the importing operation is $40,000 per year. (i) At what price should a set be sold to allow the importer to break even on a total shipment of 4,000 sets per year? [6 marks] (ii) Assume that the train sets are sold on commission by sales representatives who receive 20% of the selling price for each set sold and it is expected that $8,000 must be added to the fixed cost for advertising. If 20,000 units are sold at the same price calculated in the previous part, would the company be in a profit or loss? [6 marks]
Question 1 [25 marks] Using your own words, write an explanation for the following terms in engineering economics: (a) Opportunity cost with an example [5 marks] (b) Arithmetic gradient series with a simple cash flow diagram [5 marks] (c) Equilibrium price with a simple graph [5 marks] (d) Mutually exclusive alternatives with an example [5 marks] (e) Advantages and disadvantages of Gantt chart [5 marks] Question 2 [25 marks] (a) Using your own words explain the payback analysis and write its advantages and disadvantages. [13 marks] (b) An import company buys foreign-made toy train sets at $25 per unit. The fixed cost of the importing operation is $40,000 per year. (i) At what price should a set be sold to allow the importer to break even on a total shipment of 4,000 sets per year? [6 marks] (ii) Assume that the train sets are sold on commission by sales representatives who receive 20% of the selling price for each set sold and it is expected that $8,000 must be added to the fixed cost for advertising. If 20,000 units are sold at the same price calculated in the previous part, would the company be in a profit or loss? [6 marks]
Introductory Circuit Analysis (13th Edition)
13th Edition
ISBN:9780133923605
Author:Robert L. Boylestad
Publisher:Robert L. Boylestad
Chapter1: Introduction
Section: Chapter Questions
Problem 1P: Visit your local library (at school or home) and describe the extent to which it provides literature...
Related questions
Question
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Introductory Circuit Analysis (13th Edition)
Electrical Engineering
ISBN:
9780133923605
Author:
Robert L. Boylestad
Publisher:
PEARSON
Delmar's Standard Textbook Of Electricity
Electrical Engineering
ISBN:
9781337900348
Author:
Stephen L. Herman
Publisher:
Cengage Learning
Programmable Logic Controllers
Electrical Engineering
ISBN:
9780073373843
Author:
Frank D. Petruzella
Publisher:
McGraw-Hill Education
Introductory Circuit Analysis (13th Edition)
Electrical Engineering
ISBN:
9780133923605
Author:
Robert L. Boylestad
Publisher:
PEARSON
Delmar's Standard Textbook Of Electricity
Electrical Engineering
ISBN:
9781337900348
Author:
Stephen L. Herman
Publisher:
Cengage Learning
Programmable Logic Controllers
Electrical Engineering
ISBN:
9780073373843
Author:
Frank D. Petruzella
Publisher:
McGraw-Hill Education
Fundamentals of Electric Circuits
Electrical Engineering
ISBN:
9780078028229
Author:
Charles K Alexander, Matthew Sadiku
Publisher:
McGraw-Hill Education
Electric Circuits. (11th Edition)
Electrical Engineering
ISBN:
9780134746968
Author:
James W. Nilsson, Susan Riedel
Publisher:
PEARSON
Engineering Electromagnetics
Electrical Engineering
ISBN:
9780078028151
Author:
Hayt, William H. (william Hart), Jr, BUCK, John A.
Publisher:
Mcgraw-hill Education,