Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 6, Problem 46P
To determine

Calculate the minimum annual number.

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A company has a project for building and operating a new electricity generation station. The operation costs of generators is given by: Co = MHN3 Where M is constant, H is the operation hours, and N is the number of generators. It is known that, when the company uses 12 generators, the operation cost is found to be $ 250 per hour. Other overhead costs including electricity transformation and maintenance are estimated to be $40000 for each hour per generator. 1- What is the optimum number of generators to be used in order to 2- How to ensure your answer to part (1) is correct. imize costs?
A manufacturer produces a piece of plywood at a labor cost of P20.00 and material at P35.00. The fixed charges on business are P150,000.00 a month and the variable cost is P20.00 a piece. If one plywood sells for P60.00 each, how many pieces must be produced each month for the manufacturer to break even?
A small automotive supply company manufactures fuel gauges for various types of cars. The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88. The average price the fuel gauge sells for is $48.20 The company manufactures its products 252 days per year. What is the minimum number of fuel guages per day that the company must produce in order to break even?
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