Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 8P
(a):
To determine
Selecting alternative.
(a):
To determine
Change in analysis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A strawberry growing company is deciding its production and sale plan for the national and international markets.The sale price for each ton of strawberry depends on the quantity offered in the market. If x1 tons is offered for the domestic market, the sale price will be (30 - x1) CU / ton, while if x2 tons is offered for the international market, the sale price will be (40 - x2) CU / ton.The cost for each ton of strawberry for the domestic market is 10 MUs, while for the international market it is 15 MUs.The company has the capacity to produce up to 10 tons of strawberries for sale and, according to SAG restrictions, it must dedicate at least 10% of its production to the international market.For technical production reasons, the company must additionally satisfy the following restriction: x12 + x22 ≤64.a) Raise the NLP model that allows maximizing the net profit for the companyb) State the KKT conditions for the problem and indicate whether they are necessary and / or sufficient.c)…
A strawberry growing company is deciding its production and sale plan for the national and international markets.The sale price for each ton of strawberry depends on the quantity offered in the market. If x1 tons is offered for the domestic market, the sale price will be (30 - x1) CU / ton, while if x2 tons is offered for the international market, the sale price will be (40 - x2) CU / ton.The cost for each ton of strawberry for the domestic market is 10 MU, while for the international market it is 15 MU.The company has the capacity to produce up to 10 tons of strawberries for sale and according to SAG restrictions, it must dedicate at least 10% of production to the international market.For technical production reasons, the company must additionally satisfy the following restriction: x12 + x22 ≤64.d) There is the option of buying new machinery to increase the production capacity of the company. In what range should the new machine increase production capacity to suit the company? How…
Problem 2: As a building designer, you have been asked to analyze and select the best
window frame type alternative-either aluminum or steel. The project is located in a remote
area, and the nearest industrial area hosting steel and aluminum windows frames
manufacturers is 250 km away. All project windows are identical, and the circumference of
the window frame is 6.2 meter. A crew of two labors is required to manufacture one steel
frame. It takes 2.5 hours to manufacture the first window every day, and the learning rate is
0.9. The number of production units is per day is limited to 8. The weight of steel is 12 kg per
meter, and the weight of aluminum is 4.5 kg per meter. The cost of steel is 0.4 OMR per kg
and the cost of aluminum 1.1 OMR per kg. If 45 windows frames are required for the project,
the crew cost is 3 OMR per hour for steel frames and 3.6 for aluminum frames, and the
transportation, price is 0.01 OMR per kg per 50 km, which alternative would you select?
Chapter 14 Solutions
Engineering Economy (17th Edition)
Knowledge Booster
Similar questions
- A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month.a) Derive how to find the number of units that should be produced annually to maximize profit.b) What is the maximum profit per year?c) What is the annual breakeven point?d)What is the company’s range of profitable output per year?arrow_forwardA company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month. 1) What is the company’s range of profitable output per year?arrow_forwardTo reduce shipping distances between the manufacturing facilities and a major consumer, b) a Korean computer brand, Intel Corp. intends to start production of a new controlling chip for Pentium III microprocessors at their two Asian plants. The cost of producing x1 chips at Chiangmai (Thailand) is C = 0.002x? + 4x1 + 500, and the cost of producing x2 chips at Kuala-Lumpur (Malaysia) is C2 = Korean computer manufacturer buys them for RM150 per chip. 0.005x + 4x2 + 275 . The %3| i) Find the quantity that should be produced at each Asian location to maximize the profit. ii) Using the second order condition (SOC), prove that the profit is at the maximum.arrow_forward
- Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $64,470. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,510 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is $ . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…arrow_forwardA clothing manufacturer makes trousers,skirts and blouses.Each trouser requires 20 minutes of cutting time,60 minutes of sewing time and 5 minutes of packaging time.Each skirt requires 15 minutes of cutting time,30 minutes of sewing time and 12 minutes of packaging time.Each blouse requires 10 minutes of cutting time, 24 minutes of sewing time and 6 minutes of packaging time. The amount of time available for cutting,sewing and packaging is 115 hours, 280 hours and 65 hours respectively.Determine how many of each type of clothing should be made to use all available labour hours.arrow_forwardA clothing manufacturer makes trousers, skirts and blouses. Each trouser requires 20 minutes of cutting time, 60 minutes of sewing time and 5 minutes of packaging time. Each skirt requires 15 minutes of cutting time, 30 minutes of sewing time and 12 minutes of packaging time. Each blouse requires 10 minutes of cutting time, 24 minutes of sewing time and 6 minutes of packaging time. The amount of time available for cutting, sewing and packaging is 115 hours, 280 hours and 65 hours respectively. Using either the Inverse Method or the Cramer’s Rule, determine how many of each type of clothing should be made to use all available labor hours?arrow_forward
- In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $29 per doll. During the holiday selling season, FTC will sell the dolls for $37 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. Determine the equation for computing FTC's profit for given values of the…arrow_forwardDuring your first month as an employee at Engro. Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives for producing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previousemployee who could not finish the analysis, but she has given you the following information:An old turning machine valued at $350,000 exists (in the warehouse) that can be modified forthe new drill bit. The in-house technicians have given an estimate of $40,000 to modify thismachine, and they assure you that they will have the machine ready before the projected startdate (although they have never done any modifications of this type). It is hoped that the oldturning machine will be able to meet production requirements at full capacity. An outsidecompany, Descon Engg. Inc., made the machine seven years ago and can easily do the…arrow_forwardProblem # 2 The University Eye Institute in upper New-York state is a state-of-the-art ophthalmology center that specializes in a sophisticated laser surgery to correct myopia. Current annual volume is 1000 operations. A major customer of the center is the United Health Insurance system. United currently sends the University Eye Institute 200 patients per year or 20% of the total. United pays $2,500 per operation as does every payor. The United Health Insurance Company is satisfied with the quality and service provided by the University Eye Institute and has proposed that they send the Center an additional 100 patients (operations) per year. United proposes that the fee be reduced to $2,000 for the additional 100 patients and for the prior 200 patients. Assume the fee paid by payors other than United Health remains the same. a) What is the marginal revenue per patient if the proposal is accepted? b) What is the marginal cost per patient if the proposal is accepted? Here are some cost…arrow_forward
- A senior buyer for Nike decided to order a men's shoe during a buyers meeting. The shoe will be a part of nike's easter promotion. Upcoming designs are to be released after easter, so the shoes have to be sold during the easter periodNike would like to host a clearance sale, in an attempt to sell all shoes not sold by march 31st. The shoes will be sold retail at $50 per pair and the company makes $15 profit per pair. At the selling price of $21 per pair, all surplus shoes would beexpected to be sold during the April sale. The expected demand for the shoes is 700 pairs with a standard deviation of 300 pairs. Given the information above, How much pairs of this shoe should be ordered by the buyer.arrow_forwardIn preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per doll. During the holiday selling season, FTC will sell the dolls for $42 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Create a what-if spreadsheet model using a formula that relates the…arrow_forwardQuestion 9 Trenny has asked her assistant to prepare estimates of cost of two different sizes of power plants. The assistant reports that the cost of the 150 MW plant is $220,000,000, while the cost of the 270 MW plant is $400,000,000. If Trenny has a budget of only $300,000,000, estimate how large a power plant she could afford using linear interpolation (Enter your answer rounded to one decimal place and in MW eg. XX.X)?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education