
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 38
A company is considering two alternatives to automate the pH of process liquids. Alternative A will have fixed costs of $42,000 per year and will require 2 workers at $48 per day each. Together, these workers can generate 100 units of product per day. Alternative B will have fixed costs of $56,000 per year, but with this alternative, 3 workers will generate 200 units of product. If x is the number of units per year, the variable cost (VC) in $ per year for alternative B is represented by:
A) [2(48)/100] x
B) [3(48)/200] x
C) [3(48)/200] x + 56,000
D) [2(48)/100] x + 42,000
A) [2(48)/100] x
B) [3(48)/200] x
C) [3(48)/200] x + 56,000
D) [2(48)/100] x + 42,000
Explanation
Fixed costs are $56,000 per year under a...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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