EGN 3203 engineering economics Assignment (Lo1 3. The project profit is the reve
ID: 420297 • Letter: E
Question
EGN 3203 engineering economics Assignment (Lo1 3. The project profit is the revenue minus the total cost. True False Cost Estimation Approach 4. A factory produces a small electronic gadget. If the factory has fixed monthly overheads of AED 5000 and the variable.cost is AED 15 per unit. The selling price for each unit is AED 20 1) If the factory produces 500 units a. What is the total fixed casttololcest b. What is the total revenue c. Will the factory make profit or loss? 2) What is the break Even Quantity? Hint: The break Even Quantity is defined as the number of units to be produced such that the factory have zero loss? 5. After Saeed graduates from HCT he starts looking for a job. He is offered a Job Awhich pays 35,000 AED per month and aljob B) which pays 30,000 AED per.month. At this point he is approached by his classmate Ahmed, who proposes to him to start their own company in the event organizing business. If Saeed decides to go into business with Ahmed, what is his opportunity cost? Unit Costs Site work activities associated with constructing a small bridge are shown in the table below The table includes the quantity of each activity, the unit of measurement associated with each activity, and the unit cost of each activity. Use the data to determine 6. (a ) the total cost for structural excavation, (b) the total cost forthe pile drivingrig, ang (c) the total lbor cost for the ste mord. Unit of abor Equipment Material Quantity Measurement Unit Cost Unit Cost,s Unit Cost Activity 135 1.43 Excavation 1G67 cy unclassified 5 00 21.31 Excavation snactural 120 ?? 778 172 340 Backfill ompacted 5688 6420 3.13 293 1657 Is Pile driving rig Piling, steel. driving job 2240 Legend cy cubic yad Iis lump som. if-lneor fortExplanation / Answer
3.
True
Project profit = Revenue – cost
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4.
1.
A.
Total fixed cost = AED 5000
B.
Total revenue = 500*20 = AED 10000
C.
Profit = Revenue – variable cost – fixed cost = 500*20 – 500*15 – 5000 = -AED2500
So, there will be a loss of AED 2500.
2.
Break even quantity = fixed cost / (price per unit – variable cost per unit)
Break even quantity = 5000/(20-15)
Break even quantity = 1000 units
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5.
Opportunity cost = AED 35000
Because, it is the second best opportunity forgone if Saeed goes into the business.
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