Engineering Economics Final Exam With Correct Answers

ENGINEERING ECONOMICS FINAL EXAM ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




WITH CORRECT ANSWERS ||\\||\\ ||\\||\\




Engineering Economic Analysis is to compare ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




alternatives on economic merits systematically - ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




correct answers ✔✔True ||\\||\\ ||\\||\\




In the economic decision making process, which step
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best explains the following consideration.
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Maximize profit in case of ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




-fixed input ||\\||\\




-fixed output ||\\||\\




-neither input or output fixed - correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




✔✔Select criterion to determine the best alternative ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




When we consider ethical dimensions in decision
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making, which process step fits for following ethical ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




lapse example? ||\\||\\

,-Using a short horizon favors one alternative - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




answers ✔✔Construct a model
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Which statement does not explain the reasons why ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




ethics is important in engineering? - correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




✔✔Ethical decisions in business are directly ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




connected to the profit increase. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Ross Manufacturing in Atlanta is considering
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outsourcing a component from an offshore company. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




The company has collected the following data to
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make an economic decision. ||\\||\\ ||\\||\\ ||\\||\\




Cost to make it in-house = $96 per unit.
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Annual Demand = 500,000 unitsPrice quoted by the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Asian company = $90 per unit plus a shipping cost of
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




$20,000 per shipment. ||\\||\\ ||\\||\\




Determine the number of shipments per year that ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




the company can require the supplier to make in
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order to justify outsourcing.In addition to cost
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, consideration, what other factors would weigh in ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




decision making? - correct answers ✔✔150 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Tech Engineering in TN is making a product for the
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overseas market. The following cost data for the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




product has been compiled. ||\\||\\ ||\\||\\ ||\\||\\




Selling price: $167 ||\\||\\ ||\\||\\




Material and purchased parts: $25/unit ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Direct labor: 2 hrs at $20 per hour ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Fixed cost: $1,400,000 ||\\||\\ ||\\||\\




If the overhead expenses are charged at 80 % of labor
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cost, determine the breakeven volume for this
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product. - correct answers ✔✔20,000 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




A product that is very labor intensive assembled at
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Boyds Aero Structure in Memphis has an average ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




labor cost of $20/hr. Overhead expenses are charged
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at 100% of labor at this company.
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