Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. \[\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\ \hline \text { Selling price } & \$ 167 \\ \hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\ \hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\ \hline \text { Fixed Cost } & \$ 1,400,000 \\ \hline \end{array}\] -If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

A) $72 B) $97 C) $65 D) None of these A) $72 B) $97 C) $65 D) None of these B

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. \[\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\ \hline \text { Selling price } & \$ 167 \\ \hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\ \hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\ \hline \text { Fixed Cost } & \$ 1,400,000 \\ \hline \end{array}\] -To reduce the breakeven volume to 15,000 units, what should be the selling price?

A) $210.33 B) $190.33 C) $241.35 D) None of these A) $210.33 B) $190.33 C) $241.35 D) None of these

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. \[\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\ \hline \text { Selling price } & \$ 167 \\ \hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\ \hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\ \hline \text { Fixed Cost } & \$ 1,400,000 \\ \hline \end{array}\] -The breakeven volume for this product is ____________.

A) 14,433 B) 8,383 C) 20,000 D) None of these A) 14,433 B) 8,383 C) 20,000 D) None of these

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. \[\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\ \hline \text { Selling price } & \$ 167 \\ \hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\ \hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\ \hline \text { Fixed Cost } & \$ 1,400,000 \\ \hline \end{array}\] -What is the profit per unit if 30,000 units are sold?

A) $23.33 B) $20.81 C) $24.35 D) None of these A) $23.33 B) $20.81 C) $24.35 D) None of these

Exam 2: Estimating Engineering Costs and Benefits

A 2000-gallon metal tank to store hazardous materials was bought 15 years ago at cost of $100,000. What will a 5,000-gallon tank cost today if the power-sizing exponent is 0.57 and the construction cost index for such facilities has increased from 180 to 600 over the last 15 years? Choose the closest value.

Free

(Multiple Choice)

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(78)

Question 1

Correct Answer:

Verified

C

Case Study 2 A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average labor cost of $20/hr. Overhead expenses are charged at 100% of labor at this company. Time for the very first unit = 10 hours Time for the fourth unit = 8.1 hours. -The learning curve percentage for this operation is ________.

Free

(Multiple Choice)

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(80)

Question 2

Correct Answer:

Verified

A

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price \ 167 Materials and purchased parts \ 25/ unit Direct Labor 2 at \ 20 per hour Fixed Cost \ 1,400,000 -If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

Free

(Multiple Choice)

4.8/5

(76)

Question 3

Correct Answer:

Verified

B

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price \ 167 Materials and purchased parts \ 25/ unit Direct Labor 2 at \ 20 per hour Fixed Cost \ 1,400,000 -To reduce the breakeven volume to 15,000 units, what should be the selling price?

(Multiple Choice)

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(74)

Question 4

An opportunity cost is associated with using a resource in one activity instead of another.

(True/False)

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Question 5

Life cycle costs (LCC) are costs incurred on a product from cradle to grave, (i.e) concept generation to retirement.

(True/False)

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(71)

Question 6

The breakeven volume is the quantity for which the unit cost is minimized.

(True/False)

4.9/5

(74)

Question 7

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price \ 167 Materials and purchased parts \ 25/ unit Direct Labor 2 at \ 20 per hour Fixed Cost \ 1,400,000 -The breakeven volume for this product is ____________.

(Multiple Choice)

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(70)

Question 8

The learning curve percentage is 80% if the learning curve exponent is given as -0.3214.

(True/False)

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(73)

Question 9

Sunk costs must be ignored in engineering economic decision making as sunk costs are money already spent and do not have any consequence on decision making.

(True/False)

4.9/5

(73)

Question 10

Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price \ 167 Materials and purchased parts \ 25/ unit Direct Labor 2 at \ 20 per hour Fixed Cost \ 1,400,000 -What is the profit per unit if 30,000 units are sold?

(Multiple Choice)

5.0/5

(78)

Question 11

Case Study 2 A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average labor cost of $20/hr. Overhead expenses are charged at 100% of labor at this company. Time for the very first unit = 10 hours Time for the fourth unit = 8.1 hours. -What is the cumulative time for 100 units to be made?

(Multiple Choice)

4.7/5

(67)

Question 12

An opportunity cost is associated with using a resource in one activity instead of another.

Life cycle costs (LCC) are costs incurred on a product from cradle to grave, (i.e) concept generation to retirement.

The breakeven volume is the quantity for which the unit cost is minimized.

The learning curve percentage is 80% if the learning curve exponent is given as -0.3214.

Sunk costs must be ignored in engineering economic decision making as sunk costs are money already spent and do not have any consequence on decision making.

Making Economic Decisions

Interest and Equivalence

Equivalence for Repeated Cash Flows

Present Worth Analysis

Annual Cash Flow Analysis

Rate of Return Analysis

Choosing the Best Alternative

Other Analysis Techniques

Uncertainty in Future Events

Depreciation

Income Taxes for Corporations

Replacement Analysis

Inflation and Price Change

Selection of a Minimum Attractive Rate of Return

Economic Analysis in the Public Sector

Accounting and Engineering Economy

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