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- ● G: The client hires you to go to and personally source materials from China for 5 days. It was agreed that the client pays you on a per diem basis and pegged the fees at Php 6,000/day. How much is your total RPF for rendering this type of service?A light manufacturing firm has set up a project for develop- ing a new machine for one of its production lines. The most likely estimated cost of the project itself is $1,000,000, but the most optimistic estimate is $900,000 while the pessimists predict a project cost of $1,200,000. The real problem is that even if the project costs are within those limits, if the project itself plus its implementation costs exceed $1,425,000, the project will not meet the firm’s NPV hurdle. There are four cost categories involved in adding the prospective new machine to the production line: (1) engineering labor cost, (2) nonengineering labor cost, (3) assorted material cost, and (4) production line downtime cost. The engineering labor requirement has been estimated to be 600 hours, plus or minus 15 percent at a cost of $80 per hour. The nonengineering labor requirement is esti- mated to be 1,500 hours, but could be as low as 1,200 hours or as high as 2,200 hours at a cost of $35 per hour. Assorted…ANSWER THE FOLLOWING QUESTIONS ASKED AFTER READING THE CASE: Teloxy Engineering has received a one-time contract to design and build 10,000 units of a new product. During the proposal process, management felt that the new product could be designed and manufactured at a low cost. One of the ingredients necessary to build the product was a small component that could be purchased for $60 in the marketplace, including quantity discounts. Accordingly, management budgeted $650,000 for the purchasing and handling of 10,000 components plus scrap. During the design stage, your engineering team informs you that the final design will require a somewhat higher-grade component that sells for $72 with quantity discounts. The new price is substantially higher than you had budgeted for. This will create a cost overrun. You meet with your manufacturing team to see if it can manufacture the component at a cheaper price than buying it from the outside. Your manufacturing team informs you that it can…
- A firm must make a bid on a contract to make 12 units of a new product. Engineering analysis indicates that the nature of this product and its manufacturing processes resemble those for the firm’s current model, so the firm decides to base its bid on the 85 percent learning rate it experienced on that model. If engineers estimate that the first unit will require 10 hours of labor, how many hours will the 12 unit require? How many hours will the firm take to make all 12 units?In building their plant, the officers of the International Leather Company had the choice between alternatives: One alternative is to build in Metro Manila where the plant would cost P2,000,000. Labor would cost annually P120,000 and annual overhead P40,000. Taxes and insurance would total 5% of the first cost of the plant. The second alternative would be to build in Bulacan a plant costing P2,250,000. Labor would cost annually P100,000 and overhead would be P55,000. Taxes and insurance would total 3% of the first cost. The cost of raw materials would be the same in either plant. If capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose?You must decide between job offers from CPM Constructionand Fudd Associates. Both companies concentrate on sustainablecommercial construction, have similar fringe benefitsand offer comparable salary increases. CPMConstruction offers you a $20,000 sign-up bonus, whileFudd Associates will give you $30,000 after three years inthe job. Which offer would you take? Why? ConsiderEngineering Economy principles in your explanation.
- A contractor estimates that he could finish a project in 15 days if he has 20 men. At the start, he hired 10 men then after 6 days, 10 more men are added. How many days was the project delayed? A. 6 B 5 € 4 D 3 E None of the aboveA repair company needs parts for a window air conditioner. The parts list for$273.75. A local supply company gives the repair company a discount of 8%.A distributor in a city 75 miles away gives a discount of 20%. The round-tripcost to the city is $40.50.a. If the parts are bought from the local company, what is the cost?I am still having trouble undertsanding this, can you please explain it better
- An engineer invested $11,000 and the annual revenue was $4,000 in the first year, $4,000 in the second year, and $4,000 in the third year. How long does it take to get the initial investment back?A client plans to construct a manufacturing plant that involves multiple engineering disciplines. Calculate the total engineering fees including taxes based on the following: Mechanical Works, $1,540,000 Electrical Works, $1,780,000 Earth Works, $950,000 Civil Works, $2,125,100 Environmental Works, $1,325,000 Basis B fees = 9% There are no office fees Taxes = 13%01/A manufacturing concern produces a product which is sold at a price of $10.5 per unit. The plant's fixed cost is $50000 and its variable cost is $6.5 per unit. How many units should be produced at the breakeven point? How many units must be produced in order to earn a profit of $10000? What should the profit on a sales volume of 20000 units be?