Engineering Economic po Yung subject hehe. Pa answer po thanks. A firm believes a product's sales volume (S) dependson its unit selling price (P) as S = $100 – P. Theproduction cost (C) is $1000 + 10S.(a) Graph the sales volume (S) from 0 to 100 on thex axis, total cost and total income from $0 to$2500 on the y axis, C = $1000 + 10S, and plotthe curve of total income. Mark the breakeven%3Dpoints on the graph.(b) Determine the breakeven point (lowest sales vol-ume at which total sales income just equals totalproduction cost).(c) Determine the sales volume (S) at which thefirm's profit is a maximum.

A)First, we make the table, Sales Total Cost($) Total Income($) Profit($) 1 2 3 4 = 3-4 0…

Answered: mine the breakeven point (lowest sale t…

Business

Economics

mine the breakeven point (lowest sale t which total sales income just equal ction cost).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A mill producing steel plate has fixed costs of $100,000 per week and variable costs of $0.15 per…

A: Variable costs vary based on the amount of output produced. Variable costs may include labor,…

Q: The fixed cost at Harley Motors is $5 million annually. The main product has revenue of $89 per unit…

A: a.) Break-even quantity can be calculated as follows: Thus, the value of break even quantity is…

Q: +$30,000 to +$70,000 per month in sales for extended battery life Samsung mobile is considered as…

A: Revenue is the money that is generated from the sale of regular operations of the firm. It is…

Q: SE PROVIDE A COMPLETE AND CORRECT SOLUTION AND ANSWER ASAP. The fixed cost at Harley Motors is $5…

A: Fixed Cost = 5 million Revenue = 89 per unit Variable cost = 45 per unit

Q: Product A currently sells for $12 per unit. The variable cost is $4 per unit and 10,000 units are…

A: Given the selling price = $12 per unit Total units for sale = 10000 units Total Revenue = Price x…

Q: Point F indicates _____? A) where the cost per unit is at a minimum; B) where the AVC is at a…

A: The graph in the question shows cost curves where curve ending with point A is Marginal cost (MC)…

Q: 20 tons per day. The following data have been compiled for comparison of th two incinerators: Item…

A: Process costing is an accounting methodology that traces and accumulates direct costs, and allocates…

Q: Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. a. What is the…

A: Fixed cost is independent of output produced.

Q: A plywood manufacturer produces a piece of plywood at a labor cost of PO.50 and material cost of…

A: Break-even point refers to the situation where the total revenue is equal to total cost.

Q: Required information The fixed cost at Harley Motors is $5.4 million annually. The main product has…

A: * SOLUTION :- * 11) Variable cost per unit and Total Fixed Costs do not change with change in…

Q: A company produces a certain commodity. The labor and material cost for each item produced is P65.…

A: Let the number of units be x Therefore, Total labor and material cost = P65 * n Other variable cost…

Q: Ma Bryan sells homemade preserves. The profitrelation for the following estimates at a quantitythat…

A: Given information:

Q: The cost of producing a small transistor radio set consists of P 230.00 for labor and P 370.00 for…

A: Break even point is the point where firm produces the output and sell those products which recover…

Q: Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: Eng. Eco. Q1 Gamma Associates has the following details: Fixed cost = Rs. 20,00,000 Variable cost…

A: Given information: Fixed cost = Rs 2000000 Variable cost per unit = Rs 100 Selling price per unit =…

Q: In determining the cost involved in fabricating sub-assembly B within a company, the following data…

Q: Compute the contribution margin per unit if the total fixed cost is P400, 000 and breakeven point is…

A: Breakeven point = Fixed cost / (Sales price per unit - variable cost per unit) Contribution margin =…

Q: An office supplies retailer orders staplers (among other products) from the manufacturer. The annual…

A: Keeping unsold items in storage results in holding charges.The price of ruined or damaged items is…

Q: Tech Engineering in TN is making a product for the overseas market. The following cost data for the…

A: The Break even point analysis is in great use and widely recognised methods to make various rational…

Q: The Asian Transmission Company makes and sells certain automotive parts. Present sales volume is…

A: Sales volume = 500000 Selling price = 0.50 Total expenses = 80000

Q: The publishing company is publishing a book for business economics for which it has estimated the…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The Waste Not – Want Not ([WN]²) company makes compressed soap tablets that can be “rehydrated" for…

A: Answer: Given, Fixed cost up to 400,000 tablets per month = $125,000 per month Price of tablet =…

Q: The profit relation for the following estimates at a quantity that is 10% above breakeven is:…

A: ANS Profit earned by a firm is the difference between the TR earned and the TC incurred by a firm at…

Q: McBurger Inc., wants to redesign its kitchen to improve productivity and quality. Three designs,…

A: As per the honor code, we are allowed to attempt only first three sub-parts of the question. If you…

Q: Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its…

A: Fixed Cost = $500.00 Variable Cost = $0.50 per unit Average Selling Price = $0.75 per unit (a)…

Q: Breakeven Analysis 1. The annual maintenance cost of a machine shop is P 69,994. If the cost of…

Q: Ace of Diamonds purchased 78 diamond bracelets at $230 each and the regular selling price was $345.…

A: Given; Quantity of diamond bracelets purchased= 78 Purchase price= $230 Selling price= $345 50% of…

Q: The AW value for Design A is $ /mi. (Round to the nearest hundreds.) The PW value for Design A…

A: The Design Economy involves a broader purpose of design, including 10 SIC codes, such as…

Q: A car wheel making company has the following data related to cost: Total Cost = $ 15000 + 1000X and…

A: Break-even point: It is the point where TC=TR.

Q: Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its…

A: Given information is: Fixed cost: $500 Variable cost: $0.65 per unit Selling price: $0.85 per unit…

Q: Company E manufactures regulators at a labor cost of $90 per unit and material cost of $300 per…

A: Break even situation is reached where the total revenue is equal to total cost. In other words a…

Q: Consider the same firm from the end of week quiz with the following TVC schedule and a fixed cost of…

A: The short-run aggregate supply bend is a vertical incline. The short-run is the point at which all…

Q: 16. A local company assembling calculators produces 400 units per month and sells them at P1,800…

A: The profit is the difference between total revenue and total cost. Total revenue is the revenue that…

Q: Given that the profit function of a company is linear, if the manufacturer produces more than the…

A: Total revenue is defined as the revenue earned by a firm by selling all its output.

Q: Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50.a. What is the…

A: Fixed cost is the cost which does not change with the change in the output level. Variable cost is…

Q: The cost of producing a small transistor radio set consists of ₱23.00 for labor and ₱37.00 for…

A: Given the fixed cost = 100000 Variable cost = 1 Selling price for each transistor= 75

Q: A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit.…

A: Given: Selling Price=P 2.8 Variable Cost=P 1.8 Total Fixed cost=P 20000

Q: An aluminum extrusion plant manufactures a particular product at a variable cost of $0.04 per unit,…

A: The Break-even point refers to the level of production at which the production cost equals the…

Q: alculation of break-even point for mask production/sale in the vicinity. Can a break-even point be…

A: Break-even Point Break-even Point is the point where the firm's total revenue is equal to the total…

Q: 31. A company produces a certain commodity. The labor and material cost for each item produced is…

A: Solution:- Let the number of units be x Therefore, Total labor and material cost = P65 * n Other…

Q: FEMA (Federal Emergency Management Agency) has ordered 25 specialized test units capable of field…

A: Here, FEMA has ordered 25 specialized test its capable of field checking separate elements Thompson…

Q: The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and…

Q: The publishing company is publishing a book for business economics for which it has estimated the…

A: Note: As per the StudyMode policy, we are restricted to answer first three sub-parts of the…

Q: Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering…

A: Economic order quantity is positively related to the ordering cost. It means as ordering cost rises…

Q: A machine has a first cost of $5,000 with a useful life of 5 years. It will have a salvage value of…

A: Given The first cost of machine =$5000 Useful life= 5 years Yearly maintenance cost =$500 Salvage…

Q: A perfume company manufactures a single product having a cost of OMR 1.50 per unit. Fixed cost is…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: 2) A certain part can be obtained by either of two methods. Method X will have fixed costs of…

A: Breakeven refers to the point at which the total cost of production is equal to the total revenue .…

Q: An architect-engineering firm is planning a parking lot to accomodate 400 vehicles. Each parking…

A: The estimation of the amount of costs that will be incurred to create a product or construct…

Question

Engineering Economic po Yung subject hehe. Pa answer po thanks.

A firm believes a product's sales volume (S) depends
on its unit selling price (P) as S = $100 – P. The
production cost (C) is $1000 + 10S.
(a) Graph the sales volume (S) from 0 to 100 on the
x axis, total cost and total income from $0 to
$2500 on the y axis, C = $1000 + 10S, and plot
the curve of total income. Mark the breakeven
%3D
points on the graph.
(b) Determine the breakeven point (lowest sales vol-
ume at which total sales income just equals total
production cost).
(c) Determine the sales volume (S) at which the
firm's profit is a maximum.

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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

A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 75 – 0.1D units (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,000 per month and the variable cost is $30 per unit produced. Solve, a. What is the maximum profit per month related to thisproduct? b. What is the range of profitable demand during a month?
The cost, in millions of dollars, of building a three-story high school in NewYork State was estimated to be:   2C x x x x      1.7 0.14 0.0001 20 400where x is the number of thousands of square feet. Suppose that you arecontemplating building a for-profit three-story high school and estimate thatyour total revenue will be $0.2 million dollars per thousand square feet.(a) What is minimum area for a three-story high school in New YorkState, that this model covers? (b) What is the variable cost of building a three-story high school in NewYork State? (c) What is the fixed cost of building a three-story high school in NewYork State? (d) Determine the profit function,P x( ), for building a three-story highschool in New York State? . (e) Determine,P(250) , for building a three-story high school in New YorkState, and interpret the result. (f) How many thousands of square feet should a three-story high schoolbuilding in New York State be in order to break even?
It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake. A cupcake is sold for $4.90 each. (iv) Write an algebraic expression representing the revenue R as a function of the number of cupcakes x sold.(v) Graph both functions on the same coordinate axes.(vi) From your graph find coordinatae at which cost equals revenue.(vii) Using your graph, determine how many cupcakes need to be made to produce revenue of at least $1,029. How much profit is made for this number of cupcakes?
1. (a) A company expects fixed cost of $55,000. Margin is to be 46 percent of the retail. Variable cost in addition to costs of goods is estimated at $0.06 per dollars of sale. Find the profit function using s for sales volume. (b) Square Hospital Limited charges every COVID patient a fixed amount for using their ICU facilities. What would be the graphical nature of the demand function of ICU in this case ? (c) Write down the general form of the Augmented matrix of a system of Linear Equation which consists of 5 equations and 4 unknowns. (0.5 0.5 (d) Calculate the steady state vector for the given transition matrix: (e) Assuming the nonnegativity constraints for each variables, calculate the total number of corner points for the following system of inequalities: 2x + 5y + 4z 2 29 3r + 2y + z 2 23 10r + 8y +5z > 62
Until recently, hamburgers at the city sports arena cost $2.50 each. The food concessionaire sold an average of 4,500 hamburgers on game night. WWhen the price was raised to $3.00, hamburger sales dropped off to an averag of 4,000 per night. The concessionaire's fixed costs were $7,405.30 per night and the variable cost was $0.54 per hamburger. Answer the following questions (A) through (F). (A) Assume that the relationship between price p and demand x is linear. Express p as a function of x and find the domain of this function. ..... (Simplify your answer.) The domain of p is (Type a compound inequality.) (B) Find the revenue function in terms of x and state its domain. R(x) = (Simplify your answer.) The domain of R(x) is (Type a compound inequality.) (C) Assume that the cost function is linear. Express the cost function in terms of x. C(x) = (Simplify your answer.) (D) Graph the cost function and the revenue function in the same coordinate system. Choose the correct graph below. O A.…
The following graph shows the daily demand curve for bikes in Houston. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 240 220 200 Total Revenue 180 160 140 120 100 80 60 40 20 0 PRICE (Dollars per bike) 0 9 18 27 > 36 45 54 63 72 QUANTITY (Bikes) 00 8 Demand 90 81 99 106
The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x - 0.1x² +0.0005x³ and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric. (a) Graph the cost and revenue functions. y 8000 6000 4000 2000 y 15 000 10 000 5000 R C 100 R =² C 100 200 200 300 300 X 400 400 X Use the graph to estimate the production level for maximum profit. 283.092 x yards y 15 000 10 000 5000 y 15 000 10 000 5000 R 100 R C 100 200 200 (b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.) 186.63 yards 300 300 400 400 X
Suppose that the marginal revenue for a product is MR = 900 and the marginal cost is MC = 33,(x+9), with %3D a fixed cost of $1434. Find the profit or loss from the production and sale of 5 units. A) loss of S735 B) loss of $13,010 c) profit of $13,010 D profit of $10,810 (E) loss of $10,810
Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the “breakeven” level of x? (d) If you sell 1500 units this year, will you have a profit or loss? How much? (e) At 1500 units, what are your marginal and average costs?
Calculate the value of total revenue if total cost is $6500 and profits are $800
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
If explicit cost equals to $40000 and implicit cost $ 95,000 and the accounting profit is $23,000 what is the revenue and the economic profit