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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
best explains the following consideration.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
making, which process step fits for following ethical ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
lapse example? ||\\||\\
,-Using a short horizon favors one alternative - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answers ✔✔Construct a model
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
outsourcing a component from an offshore company. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The company has collected the following data to
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
make an economic decision. ||\\||\\ ||\\||\\ ||\\||\\
Cost to make it in-house = $96 per unit.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
order to justify outsourcing.In addition to cost
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
, consideration, what other factors would weigh in ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
decision making? - correct answers ✔✔150 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Tech Engineering in TN is making a product for the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
cost, determine the breakeven volume for this
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
product. - correct answers ✔✔20,000 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A product that is very labor intensive assembled at
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Boyds Aero Structure in Memphis has an average ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
labor cost of $20/hr. Overhead expenses are charged
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
at 100% of labor at this company.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
best explains the following consideration.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
making, which process step fits for following ethical ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
lapse example? ||\\||\\
,-Using a short horizon favors one alternative - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answers ✔✔Construct a model
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
outsourcing a component from an offshore company. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The company has collected the following data to
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
make an economic decision. ||\\||\\ ||\\||\\ ||\\||\\
Cost to make it in-house = $96 per unit.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
order to justify outsourcing.In addition to cost
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
, consideration, what other factors would weigh in ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
decision making? - correct answers ✔✔150 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Tech Engineering in TN is making a product for the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
cost, determine the breakeven volume for this
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
product. - correct answers ✔✔20,000 ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A product that is very labor intensive assembled at
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Boyds Aero Structure in Memphis has an average ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
labor cost of $20/hr. Overhead expenses are charged
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
at 100% of labor at this company.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
