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 57FE
To determine
The annual
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Number of
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10 million
10 million
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Energy bar A
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In the table above, the profit from repeat customers will equal the cost of the advertisement if there are
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million repeat customers. (Enter your response rounded to two decimal places.)
The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are $12,500 per research project.
a. If the revenue per project is $30,000, what is the breakeven number of projects of this lab in a year to sustain its operations?
b. Currently, the lab works on 20 projects a year. What is their profit at this level?
c. If variable costs increase to $13,000 per research project, what is the new BEP? By how much will their profit increase or decrease?
Q9
ABC is a small business producing instructional modules for disabled children in public
schools. The modules produced by ABC are not differentiated and the market price is
$1,300 per module. ABC operates in a small office that rents for $600 a month and leases
computer equipment that costs $480 per month. The chart lists other cost of production.
Output (Q) Fixed
(Instructional Cost
Modules
Per month)
0
1
2
3
4
5
6
7
8
9
10
Variable Total Average Average
Cost
Cost
Fixed
Variable
(TC)
Cost
(AFC)
(FC) (VC)
1,080
400
1,350
1,900
2,500
4,100
5,400
7,300
1,480
2,430
4,280
10,880
216
135
Cost
(AVC)
475
Average
Total
Cost
(ATC)
965
Marginal
Cost
(MC)
400
450
700
1) Complete the chart and plot the following graphs: AFC, AVC, ATV, MC. Be sure
to label axis and graphs.
2) How many instructional modules ABC will produce, assuming it is profit-
maximizer? Explain your answer and show that on the graph.
3) Determine ABC's profit and shade the profit on the graph.
4) Given the level of ABC's…
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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