A company uses a variable speed honing machine to increase the smoothness of the inside walls of hydraulic jacks. The hone uses acid-dipped “brushes” to perform this operation. Increasing the speed of the machine results in faster operation, but reduces brush life. A single “brush” costs $90.00 and can be refurbished several times before its useful life is over. The number of refurbishings depends on the honing speed. Each refurbishing costs $30.00. Assume a refurbished brush can smooth the same amount as a new brush, and that when purchased a new brush is ready to use. The operating cost for the hone and operator is $70.00/hr. Below are the data for operating the hone at 3 different speeds. The time required for changing brushes is incorporated into the honing rates below. Which honing speed is the most economical? Hint: find the cost per jack, not per hone or per cycle!
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Engineering Economy (17th Edition)
Additional Business Textbook Solutions
Econ Micro (book Only)
Principles of Economics (12th Edition)
Principles of Economics, 7th Edition (MindTap Course List)
Principles of Microeconomics
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
- Solve all parts will upvote. The hand written solution is not allowed pleasearrow_forwardTHE SOLUTION SHOULD BE 500 WORDSarrow_forwardYour friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, please choose the graph that shows the relationship between CLaire's selling price per hoodie and profit margin? Costs ($) Base Hoodie Cost $30 Craft Supplies to Design $10 Selling Website Service Charge 5%arrow_forward
- A factory installs new machinery that saves S(x) = 1800 dollars per year. y $ per year 1800 savings S=1800- 80 x net savings cost C = 100 x Year 80x dollars per year, where x is the number of years since installation. However, the cost of maintaining the new machinery is C(x) : = 100x X (a) Find the year x at which the maintenance cost C(x) will equal the savings S(x). (At this time, the new machinery should be replaced. Round your answer to the nearest whole number.) X = years (b) Find the accumulated net savings (in dollars) [savings S(x) minus cost C(x)] during the period from t = 0 to the replacement time found in part (a). (Round your answer to the nearest whole number.)arrow_forwardA manufacturer buys certain equipment form suppliers at $30 per unit. Total requirement is 200 units/ quarter. Ineventory carrying cost is 10% /year. Cost of placing an order is $100. Rent, insurance, storing per unit per year $3. SOLVE for the following: EOQ=? N=? T=? (in months) Total cost If 1300 is the current order quantity, how much would they save by switching to the EOQ?arrow_forwardHandwritten solution not required correct answer will get instant upvote.arrow_forward
- Estimate the cost of an oil change (5 quarts of oil) and a new oil filter for yourautomobile at a local service station. It takes a technician 20 minutes to do this job. Compare your estimate with the actual cost of an oil change at the service station. What percent markup is being made by the service station?arrow_forwardA customer just paid $77.91 for a raincoat. If the percent markup based on cost is 47%, what was the cost ( in $)arrow_forwardA company manufactures dog leashes that sell for $20.97, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $23,202 and the variable costs (materials, shipping, etc.) are $9.21 per leash. How many leashes must be produced and sold each month for the company to break even?arrow_forward
- 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