Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 3, Problem 40FE
To determine

Maximum acceptable price.

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The manufacturer of Brand A automobile tires claims that its tire can save 110 gallons of fuel over 55,000 miles of driving, as compared to a popularcompetitor (Brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire save the customer (Brand A versus Brand B)?
A car rental agency is considering a modification in its oil change procedure. Currently, it uses a Type X filter, which costs $4.75 and must be changed every 9,000 miles along with the oil (5 quarts). Between each oil change, one quart of oil must be added after each 500 miles. The proposed filter (Type Y) has to be replaced every 6,000 miles (along with 5 quarts of oil) but does not require any additional oil between filter changes. If the oil costs $1.19 per quart, what is the maximum acceptable price for the Type Y filter? Choose the correct answer below. A. The maximum acceptable price for the Type Y filter is $29.34. B. The maximum acceptable price for the Type Y filter is $14.67. C. The maximum acceptable price for the Type Y filter is $40.45. OD. The maximum acceptable price for the Type Y filter is $22.01.
A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25
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