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Question Description

Please help me solve some few questions in 14hrs time. Please be specific in your answers and submit the answers on time

Estimated indirect labor cost per unit = $0.88

Estimated raw material and purchased part cost per unit =

$38.50

All other costs are independent of production volume and are

estimated at $800,000 per year.

7. Based on the following data, develop an index for the price

of a gallon of gasoline in 2014, when 1996 is the reference

year

having an index value of 99.2. The weight placed on

regular unleaded gasoline is three times that of either

premium or unleaded plus. This is because roughly three

times as much regular unleaded is sold compared with

premium or unleaded plus. Additional calculate the cost of

premium gasoline in 2016 based on your answer in the first

part of this question with an index of 327 for 2016..

Price (Gal) in Year

Grade of Gas 199 200 2014

Premium 114 240 315

Unleaded Plus 103230305

Unded Regular

25

8. Five years ago, when the cost index was 120, a nuclear

centrifuge cost $40,000. The centrifuge had a capacity of

separating 1500 gallons of ionized solution per hour.

Today, it is desired to build a centrifuge with a capacity of

4500 gallons per hour, but the cost index now is 300.

Assuming a power-sizing exponent to reflect economies of

scale, x, of 0.75, determine the approximate cost (expressed

in today’s dollars) for the new equipment

9. Michael James works in a factory producing small parts for

the electronics industry. In the process of assembly, he

needs 30 minutes to assemble the first part. If his learning

curve rate is 65%, how many units will be produced before

the output rates exceeds 12 units per hour?

$12.00 per square foot of constructed space. The index

value was set at 100 for the first year. This past year a

survey of contractors revealed that cost were $90.00 per

square foot.

a. What index number should the manager publish in the

near future to help keep track of costs?

b. If the index value was 600 last year, what was the cost

per square foot last year?

5. A large electric company releases 62 million tons of

greenhouse gases (mostly carbon dioxide) into the

environment cach year. The company will spend $1.2

billion in capital over the next five years to reduce its

annual emissions by 5%. More will be spent after five

years to reduce greenhouse gases further

a. What is the cost of a ton of greenhouse gas?

b. If the United States produces 3 billion tons of

greenhouse gases per year, how much capital must be

spent to reduce total emissions by 3% over the next five

years based on your answer in Part (a)?

Given the data below, estimate a manufacturer’s average cost

per unit

Estimated annual production volume = 500,000 units

Estimated direct labor cost per unit – $4.75

Estimated indirect labor cost per unit = 80.88

Estimated raw material and purchased part cost per unit =

$38.50

All other costs are independent of production volume and are

estimated at $800,000 per year.

7. Based on the following data, develop an index for the price

of a gallon of gasoline in 2014, when 1996 is the reference

year having an index value of 99.2. The weight placed on

regular unleaded gasoline is three times that of either

premium or unleaded plus. This is because roughly three

times as much regular unleaded is sold compared with

premium or unleaded plus. Additional calculate the cost of

premium gasoline in 2016 based on your answer in the first

part of this question with an index of 327 for 2016..

Cost/Price Indexing, Power Sizing, and Learning Curve

Assignment

Answer the following questions and illustrate your work. You

may use the Microsoft equation editor, or simply type the

responses

1. A minor league baseball team plays home games in a stadium

that has four sections. Each section holds 2000 fans. On an

average night, attendance in each higher section is filled to

70% the capacity of the one below it. Estimate attendance on

an average night if the bottom section is completely filled.

What percent of the stadium is full?

2. A pump has failed in a facility that will be replaced in three

years. A brass pump costing $6,000 will last three years. A

used stainless steel pump that should last three years has been

sitting in the maintenance shop for a year. The pump cost

$13,000 new. The pump is currently valued at $7,000. The

maintenance supervisor says that it will cost an extra $500.00

to reconfigure the pump for the new use, and she has noted that

it could be sold used (as is) for $4,000

.. How much cheaper or more expensive would it be to use the

stainless steel pump rather than a new brass pump?

3. Given the data below, estimate a manufacturer’s total annual

cost.

Estimated annual production volume = 400,000 units

Estimated direct labor cost per unit = $3.75

Estimated indirect labor cost per unit – 50.92

Estimated raw material and purchased part cost per unit =

$32.50

All other costs are independent of production volume and are

estimated at $800,000 per year.

4. Twenty-five years ago, a cost index was created to help

track expenses. Cost during the first year of the index was

$12.00 per square foot of constructed space. The index

value was set at 100 for the first year. This past year a

survey of contractors revealed that cost were $90.00 per

square foot.

a. What index number should the manager publish in the

near future to help keep track of costs?

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