Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 34FE
To determine
Selection of alternative.
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Snip & Sketch
Sales price
Equipment cost
Overhead cost
Operating and maintenance cost
Production time per 1,000 units
Study period (planning horizon)
MARR
New
44
I
$12.50 per unit
$200,000
$50,000 per year
5 years
15% per year
0
$25 per operating hour
100 hours
x
An electronics firm is planning to manufacture a new handheld
gaming device for the preteen market. The data have been
estimated for the product. Assuming a negligible market (salvage)
value for the equipment at the end of five years, determine the
breakeven annual sales volume for this product.
Click the icon to view the data estimated for the product.
Click the icon to view the interest and annuity table for
discrete compounding when i= 15% per year.
The breakeven annual sales volume is
nearest whole number.)
units. (Round to the
Mother E, a business selling specialized helmet, has a carrying cost of P70 per unit per order. In order to satisfy the customers coming from various places, they order every 4 months. The stockout cost is P50 per unit per year. The following are the demand for specialized helmet Demand during lead time Probability 50 .1 60 .2 70 .2 80 .2 90 .1 The reorder point is 70 units. What level of safety stock should be maintained?
A new manufacturing line is being built and your team has narrowed it down to
2 options. Which one is the best option using a 20% rate to evaluate each
option? Answer the question by entering the amount of savings by choosing the
best option.
Margin of error: +/- 10
Enter your answer as a positive number representing savings from one option to
another.
Hint: When you use Net present Worth Analysis you must must LCM of the
lives to assess each option over the same period.
Option
A
B
Operating
First and
Salvage
Cost Maintenance Value
Cost/Yr
$18M $5M
$25M $3M
501,025
$4M
$6M
Life
10
years
20
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Chapter 11 Solutions
Engineering Economy (17th Edition)
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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