ABZ is a manufacturer of household appliances. Over a 5-year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000, and the used equipment was salvaged for $4000. What rate of return did the company make on this product?.
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ABZ is a manufacturer of household appliances. Over a 5-year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000, and the used equipment was salvaged for $4000. What
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- A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Matevial Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/anit Icalculated at 150% of direct labor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost makup Total price per unit $281 At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai O Not enou Information avalable O 1250un O $266.75nic"There are three machines in the mechancical engineering lab A. B, and C and need to be evaluated economically. Machine A has a first cost of $4500, an annual operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a salvage value of $350 and a service life 4 years. Machine C has a first cost of $6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service life 8 years. What is the present worth for machine C? The MARR is 10% per year" -$6,250 -$6,222 -$7,002 -$6,300 O O O OHow is an engineering economic decision is more complex andmore significant to the company?
- This is engineering economic.A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.In engineering economics, the term cost is used in many ways. What are they?
- The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of$1,000. The Lawn Ranger's total fixed costs are Soloct pnBVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x 100 in W x 5 in H each piece. 100 kg each piece. Chargeable weight: 400 kg. Total charges CPT CDG airport, Paris, France Origin pick up fee: Origin handling fee: CAD $0.20/kg CAD $0.20 x 400 = CAD $80.00 CAD $45.00 /shipment CAD $45.00 CAD $45.00 Origin terminal handling charges: CAD $0.04/kg CAD $0.04 x 400 = CAD $16.00 NavCan surcharge: B13A Export Declaration: CAD $0.07/kg CAD CAD $0.07 x 400 = CAD $17.50/shipment CAD $28.00 CAD $17.50 Air freight: $17.50/shipment CAN $4.40/kg Fuel surcharge: CAD $0.15/kg CAD $4.40 x 400 CAD $0.15 x 400 CAD $1,760.00 CAD $60.00 Security surcharge: CAD $0.08/kg CAD $0.08 x 400 CAD $32.00 TOTAL $2,040.50 $2,038.50 $2,006.50 $2,667.47