Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 12, Problem 12P
To determine
Calculate the maximum price per bulb.
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Michael’s Lobster Food Truck has been operating for three years, but he’s yet to make a profit in the competitive food truck industry. Last year, he sold 2,500 items at an average price of $12. It costs him $9 to cover his ingredients for each item, and he also has fixed costs of $8,000 per year to cover for his truck, marketing, insurance, etc. What percentage increase in the number of units sold is required for Michael to break even?
A manufacturer sells a product at $9.45 per unit, selling all produced. The fixed cost is $2325 and the variable cost is $8.20 per unit. At what level of production will there be a profit of $5000? At what level of production will there be a loss of $1550? At what
level of production will the break-even point occur?
There will be a profit of $5000 when the production level is units.
An Apple Cars plant operates most efficiently (average unit cost is minimized) when producing 18,300 cars each month. It has a
maximum output capability of 22,000 units per month (e.g., when its CEO, Tim Chef, forces everyone to work crazy amounts of
overtime), and can make as few as 7,000 units per month without forcing the hand of executives to shift production to another plant. If
the plant makes 12,770 cars in December, what was the capacity utilization rate? Round your final answer to 1 decimal place, and
enter it as a percent without the percent sign; for example, use 18.9, not 18.9% or .2.
Capacity utilization rate
Chapter 12 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11P
Ch. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28P
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