IE 1040
Fall, 2005
36
(a)
I
R
=
+
+
+
=
013 131
0 20 150
0 06 140
.
(
)
.
(
)
.
(
)
154.9
I
C
=
+
+
+
=
013 176
0 20 210
0 06 172
.
(
)
.
(
)
.
(
)
203.4
(b)
C
C
= $314,300
203 4
154 9
.
.
= $412,710
310
C
B
(8 years ago) = $2,500,000
C
B
(now) = $2,500,000(1.12)
8
= $6,189,908
S
A
= 1,500,000 lbs/yr
S
B
= 500,000 lbs/yr
X = 0.65
C
A
= C
B
S
S
A
B
X
= $6,189,908
1,500,000
500,000
0 65
.
= $12,641,919
3.14
1 mile = 5,280 feet;
25 miles = 132,000 feet; 50 yards = 150 feet
A light pole is to be installed every 50 yards or every 150 feet.
Thus,
132,000 feet/150 feet = 880 light poles need to be installed.
Cost of installing light poles = 880($2,500) = $2,200,000
Total cost = $15,000/mile(25 miles) + $2,200,000 = $2,575,000
316
K = 126 hours;
s = 0.95 (95% learning curve);
n = (log 0.95)/(log 2) = 0.074
(a)
Z
8
= 126(8)
0.074
= 108 hours
;
Z
50
= 126(50)
0.074
= 94.3 hours
(b)
C
5
= T
5
/5;
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 Spring '08
 KarenBursic
 Unit selling price, total manufacturing cost

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