Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 2, Problem 56FE
To determine
The units that must be sold in a year for the company to reach a profit value of $60,000 per year.
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2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided
and answer the questions that follow
国
Q
TC
TVC
AVC
AFC
ATC
MCe
$500,000
540,000 e
560,000 e
570,000 e
590,000 e
620,000
660,000 e
720,000
800,000 e
920,000 e
1,100,000
2e
4
to
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6
ge
to
10
For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC),
the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. Show the
first calculation for each missing column of data.
b. What is this manufacturer's fixed cost? Explain how you derived this.
Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and MC curves.
a.
С.
4
Long Run Production
Capital
labor
Units Qty
$3,000
5
32
outputs % inputs %
change
-
change
returns to
Scale
-
$5,000
10
40
100
25
increasing
$7,500
12
90
20
125
decreasing
$8,000
13
110
8.33
22.22
decreasing
$9,000
15
125
15.38
13.636
increasing
$11,000
16
130
6.66
4
increasing
$11,700 18
320
132
12.5
1.54
increasing
300
280
260
240
220
200
edited
180
160
140
120
100
80
60
For
my long run
production I wanted
to see the different
out comes if I
my
and capital variable
After doing so!
was
able to calculate
my output & input
% change using the
formula (original-new)
original
Х
labor
cost per duvet cover
40
20
10 20 30 40 50 60 70 80 90 100 120 130 140 150 160
qty of duvet covers
(per month
100
Chapter 2 Solutions
Engineering Economy (17th Edition)
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Given below is a numbered list of cost terms. For...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Suppose you are going on a long trip to your...Ch. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - A company uses a variable speed honing machine to...Ch. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
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