ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 9, Problem 46P
To determine
To calculate: The payback period if solar water system is installed instead of conventional electric water system.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is
$100
$80
$1005
$800
=
2. The cost of operating a jet-powered commercial (passenger-
carrying) airplane varies as the three-halves (3/2) power of its
velocity; specifically, Co kny3/2, where n is the trip length in
miles, k is a constant of proportionality, and vis velocity in miles
per hour. It is known that at 400 miles per hour, the average cost of
operation is $300 per mile. The company that owns the aircraft
wants to minimize the cost of operation, but that cost must be
balanced against the cost of the passengers' time (CC), which has
been set at $300,000 per hour. At what velocity should the trip be
planned to minimize the total cost, which is the sum of the cost of
operating the airplane and the cost of passengers' time?
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
Chapter 9 Solutions
ENGINEERING ECONOMIC ENHANCED EBOOK
Ch. 9 - Prob. 2QTCCh. 9 - Prob. 3QTCCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
Ch. 9 - Prob. 9PCh. 9 - Prob. 10PCh. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 54PCh. 9 - Prob. 55PCh. 9 - Prob. 56PCh. 9 - Prob. 57PCh. 9 - Prob. 58PCh. 9 - Prob. 59PCh. 9 - Prob. 60PCh. 9 - Prob. 61PCh. 9 - Prob. 62PCh. 9 - Prob. 63PCh. 9 - Prob. 64PCh. 9 - Prob. 65PCh. 9 - Prob. 66PCh. 9 - Prob. 67PCh. 9 - Prob. 68PCh. 9 - Prob. 69PCh. 9 - Prob. 70PCh. 9 - Prob. 71PCh. 9 - Prob. 72PCh. 9 - Prob. 73PCh. 9 - Prob. 74PCh. 9 - Prob. 75PCh. 9 - Prob. 77PCh. 9 - Prob. 78PCh. 9 - Prob. 79PCh. 9 - Prob. 80PCh. 9 - Prob. 81PCh. 9 - Prob. 83PCh. 9 - Prob. 84PCh. 9 - Prob. 85PCh. 9 - Prob. 86PCh. 9 - Prob. 87PCh. 9 - Prob. 88P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- In a building construction project, 7,500 feet of insulated ductwork is required. The ductwork is made from 14-gauge steel costing $8.50 per pound. The 24-inch-diameter duct weighs 15 pounds per foot. Insulation for the ductwork costs $10 per foot. Engineering design will cost $16,000, and labor to install the ductwork will amount to $180,000. What is the total cost of the installed ductwork for this project?arrow_forwardLamburgs Incorporated is attempting to predict the impact of a forthcoming environmental regulation on the variable costs associated with one of their merchandise. The legislature is still debating the regulation. There is a 50% chance that the rules will not be ready in time to impact variable costs next year. Lamburgs management anticipates that when the regulation is completed, it will increase variable costs by either 5% or 10%. At the moment, the variable cost of the product is $200 per unit. What is the expected variable cost for Lamburgs' key product next year based on these assumptions?arrow_forwardMichael’s Lobster Food Truck has been operating for three years, but he’s yet to make a profit in the competitive food truck industry. Last year, he sold 2,500 items at an average price of $12. It costs him $9 to cover his ingredients for each item, and he also has fixed costs of $8,000 per year to cover for his truck, marketing, insurance, etc. What percentage increase in the number of units sold is required for Michael to break even?arrow_forward
- Trenny has asked her assistant to prepare estimates of cost of two different sizes of power plants. The assistant reports that the cost of the 130 MW plant is $200,000,000, while the cost of the 240 MW plant is $320,000,000. If Trenny has a budget of only $300,000,000, estimate how large a power plant she could afford using linear interpolation (Enter your answer rounded to one decimal place and in MW eg. XX.X)? Number CLarrow_forwardA recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in table below (column 2). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 1 column 3). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? a) 100 ; b) 200 ; c) 300 ; d) 400 ; e) 500 show the computation how to solve it.arrow_forwardAn Apple Cars plant operates most efficiently (average unit cost is minimized) when producing 18,300 cars each month. It has a maximum output capability of 22,000 units per month (e.g., when its CEO, Tim Chef, forces everyone to work crazy amounts of overtime), and can make as few as 7,000 units per month without forcing the hand of executives to shift production to another plant. If the plant makes 12,770 cars in December, what was the capacity utilization rate? Round your final answer to 1 decimal place, and enter it as a percent without the percent sign; for example, use 18.9, not 18.9% or .2. Capacity utilization ratearrow_forward
- Cotton Corporation currently makes 13,400 subcomponents a year in one of its factories. The unit costs to produce the subcomponent are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 32 33 20 12 $ 97 An outside supplier has offered to provide Cotton with the 13,400 subcomponents at an $97.00 per-unit price. No portion of fixed overhead is avoidable. If Cotton accepts the outside offer, what will be the effect on short-term profits? Multiple Choice О $160,800 increase $112 000 incroscoarrow_forwardCarlota Music Company estimates that the marginal cost of manufacturing its Professional Series guitars is C ′ (x) = 0.02x + 100 dollars/month when the level of production is x guitars/month. The fixed costs incurred by Carlota are $4000/month. Find the total monthly cost incurred by Carlota in manufacturing x guitars/month.arrow_forwardYour friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, please choose the graph that shows the relationship between CLaire's selling price per hoodie and profit margin? Costs ($) Base Hoodie Cost $30 Craft Supplies to Design $10 Selling Website Service Charge 5%arrow_forward
- Price and cost ($ per 1,000-gallon unit) Return t A municipal water utility employs quasi-fixed capital inputs-the water treatment plant and distribution lines to homes-to supply water to 20,000 households in the community it serves. The figure below shows the cost structure of this utility for various levels of water service. Quantity of water consumption is measured in 1,000-gallon units per month. AQFC is the average quasi-fixed cost curve, and LAC is long-run average cost. Long-run marginal cost, LMC, is constant and equal to $4 per 1,000-gallon unit. The inverse demand equation is P= 24 -0.0004Qd 10 14 MR Quantity (1,000-gallon units per month) Quasi-fixed capital inputs cost per month is $ LAC AQFC LMC Darrow_forwardIn a building construction project, 7,500 feet of insulated ductwork is required. The ductwork is made from 14-gauge steel costing $8.50 per pound. The 24-inch-diameter duct weighs 15 pounds per foot. Insulation for the ductwork costs $10 per foot. Engineering design will cost $16,000, and labor to install the ductwork will amount to $180,000. What is the cost of the 14-gauge steel? $956,250 $887,456 $1,200,000 $1,000,000arrow_forwardMake or Buy Specialty Metal Products, Inc. manufactures filters for use in custom over-the-range hoods. The costs per unit, for a batch of 10,000 filters, are as follows. Direct materials $10.00 Direct labor 8.00 ET Variable overhead 1.00 Fixed overhead Total costs 4.00 $23.00 Custom Kitchens has offered to sell 10,000 filters to Specialty Metal Products for $24 per filter. If Specialty Metal Products accepts Custom Kitchens' offer, the facilities used to manufacture filters could be used to produce BBQ grates. Revenues from the sale of BBQ grates are estimated at $25,000, with variable costs amounting to 80% of sales. In addition, $1 per unit of the fixed overhead associated with the manufacture of filters could be eliminated. Compute the following: Cost to make filters $ Cost to buy filters $ Should Specialty Metal Products accept Custom Kitchens' offer? OYes, the cost to purchase the filters is less than the cost to make them. No, the cost to purchase the filters is more than the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning