A

1 PROBLEM 1.1
2
3
4
5
6
7
8
9

WYLIE IS OFFERED THIS AMOUNT NOW=

$5,000.00

WYLIE IS WILLING TO TAKE THIS AMOUNT IN A YEAR=

$5,700.00

THE INCREASE REQ'D BY WYLIE OVER ONE YEAR=

THEREFORE WYLIE'S TVOM =

$700.00 =$5,700.00-$5,000.00
14.00% =$700.00/$5,000.00

A
1 PROBLEM 1.2
2
3
4
5
6
7
8
9
10
11
12
13
14
15
a
16
17
b
18
19
20

RT LOANS=
RT'S TVOM=

$20,000.00
8.00%

RT INTEREST REQ'D=

$1,600.00

CYNTHIA BORROWS=

$20,000.00

CYNTHIA'S TVOM=
CYNTHIA'S EARNINGS=

12.00%
$2,400.00

YES, THEY SHOULD BE ABLE TO NEGOTIATE THE LOAN

RT REQUIRES $1,600 OR MORE IN INTEREST
CYNTHIA IS WILLING TO PAY $2400 OR LESS IN INTEREST
THE ACCEPTABLE RANGE IS FROM $1,600 TO $2,400

A
1 PROBLEM 1.3
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

17

a
b

RT LOANS=
$20,000.00
RT'S TVOM=
12.00%
RT INTEREST REQ'D=
$2,400.00 MINIMUM INTEREST REQUIRED BY RT
CYNTHIA BORROWS= $20,000.00
CYNTHIA'S TVOM=
8.00%
CYNTHIA'S EARNINGS= $1,600.00
WILLING TO PAY=
$2,000.00 MAXIMUM INTEREST CYNTHIA WILLING TO PAY
NO, THEY SHOULD NOT BE ABLE TO NEGOTIATE THE LOAN UNLESS ONE OR
BOTH CHANGE THEIR MIND
RT REQUIRES $2,400 OR MORE IN INTEREST
CYNTHIA CAN EARN $1,600 ON HER MONEY; HOWEVER, CYNTHIA IS WILLING TO
PAY $2,000 IN INTEREST
CYNTHIA'S MONEY MUST BE INVESTED AND SHE NEEDS TO BORROW MONEY
NOW, EVEN IF SHE HAS TO PAY $2,000 IN INTEREST. THERE IS STILL NO
ACCEPTABLE RANGE. RT REQUIRES $2,400 OR MORE IN INTEREST; CYNTHIA
WILL PAY $2,000 OR LESS. THEY ARE $400 OFF

A
B
C
D
1 PROBLEM 1.4
2
3
LOAN AMOUNT= $3,000.00
4
5
YOUR TVOM=
15.00% OR
6
7
FRIEND'S TVOM=
20.00% OR
8

9
10
11
12

13

$450.00 INTEREST
$600.00 INTEREST

YOU ARE WILLING TO MAKE THE LOAN TO YOUR FRIEND FOR $450.00
INTEREST OR MORE. YOUR FRIEND IS WILLING TO ACCEPT THE LOAN FOR
$600 INTEREST OR LESS.
SO, ANY INTEREST NEGOTIATION WITH YOU AS THE LENDER THAT IS ACCEPTABLE TO BOTH
PARTIES IS BETWEEN $450 AND $600.
YOUR FRIEND IS WILLING TO MAKE THE LOAN TO YOU FOR $600 INTEREST OR MORE. YOU ARE
WILLING TO ACCEPT THE LOAN FOR $450 INTEREST OR LESS. SO, THE ACCEPTABILITY GAP
BETWEEN YOU AND YOUR FRIEND IS $150.

J
1
2
3
4
5
6
7
8

9
10
PTABLE TO BOTH
11
12
OR MORE. YOU ARE
EPTABILITY GAP
13

1
2
3
4
5
6
7
8

A
PROBLEM 1.5

STAGE
1
2
3
4

9
5
10
11

12
13
14

INVESTMENT
STATION
ANTENNA
AMPLIFIER
LIGHTNING
PROTECTION
CONTROL
CONSOLE

COSTS IN REVS IN
NET
CUM
CUM
CUM
TODAY'S $ TODAY'S $ REV-COST COSTS
REVS REV-COST
$180,000
$270,000
$90,000 $180,000 $270,000
$90,000
$30,000
$50,000
$20,000 $210,000 $320,000
$110,000
$40,000
$30,000
-$10,000 $250,000 $350,000
$100,000
$30,000

$60,000

$30,000 $280,000 $410,000

$130,000

$15,000

$5,000

-$10,000 $295,000 $415,000

$120,000

PURCHASE THE FIRST FOUR STAGES. NOTE THAT THIS GIVES THE HIGHEST
ACCUMULATED TOTAL NET REVENUE-COST. IN TODAY'S $. NOTE THAT THE AMPLIFIER
DOES NOT PAY OUT, BUT IT IS NECESSARY FOR THE LIGHTNING PROTECTION THAT PAYS
OUT NICELY

2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED

3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE THAT MAXIMIZES
ECONOMIC WORTH
5. MARGINAL REVENUE MUST EXCEED MARGINAL COST
6. MONEY SHOULD CONTINUE TO BE INVESTED AS LONG AS EACH ADDITIONAL
INCREMENT OF INVESTMENT YIELDS A RETURN THAT IS GREATER THAN THE INVESTOR'S
TVOM

1. IDENTIFY THE INVESTMENT ALTERNATIVES

5. COMPARE THE ALTERNATIVES
7. SELECT THE PREFERRED ALTERNATIVE

15
16

17

18
19
20
21

A
B
1 PROBLEM 1.6
2
3
ORIGINAL WSI BID=
4
5
BARB & FRED EXPENSES=
6
7
8
9
10
REVISED WSI BID=
11
12
13
14
15
a
$1,900.00
16
17
b
$6,400.00
18
19
c
$6,000.00
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

$5,500.00
$1,900.00
$1,100.00 MATERIALS - NO RETURN
$400.00 TRENCHER AT $80 FOR 5 DAYS
$400.00 JACKHAMMER AT $80 FOR 5 DAYS
$4,500.00
$5,500.00 ORIGINAL
-$500.00 MATERIALS
-$500.00 TRENCHING
BARBARA AND FRED HAVE ALREADY SPENT
TOTAL SPENT AFTER WSI
SS CHARGE
GO WITH WSI, NOT SS. COMPARING SS AT $6,000 AND
WSI AT $6,400 TAKES INTO ACCOUNT SUNK COSTS
SUNK COSTS SHOULD NOT BE CONSIDERED.

$4,500 FUTURE SPENDING WITH WSI

$6,000 FUTURE SPENDING WITH SS
GO WITH WSI, NOT SS.
d

2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED

10. PAST COSTS ARE IRRELEVANT IN ENGINEERING ECONOMIC ANALYSES, UNLESS
THEY IMPACT FUTURE COSTS

1. IDENTIFY THE INVESTMENT ALTERNATIVES

4. ESTIMATE THE CASH FLOWS
5. COMPARE THE ALTERNATIVES
7. SELECT THE PREFERRED ALTERNATIVE

F
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

A
1 PROBLEM 1.7
2
3
a
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

EXAMPLES OF NON-MONETARY FACTORS INCLUDE:

QUALITY
SAFETY
ENVIRONMENTAL IMPACT
COMMUNITY ATTITUDES
LABOR-MANAGEMENT RELATIONSHIPS
SYSTEM RELIABILITY
SYSTEM AVAILABILITY
SYSTEM MAINTAINABILITY
SYSTEM OPERABILITY
SYSTEM FLEXIBILITY
IMPACT ON PERSONNEL LEVELS
TRAINING REQUIREMENTS
COMPARISON WITH COMPETITORS
IMPACT ON DIFFERENT UNITS WITHIN THE ORGANIZATION
BRINGING ABOUT CHANGE
EGO
CUSTOMER PREFERENCES
DEPENDING UPON WHAT TYPES OF ALTERNATIVES ARE BEING CONSIDERED, THIS LIST
COULD BE ALMOST LIMITLESS.

NONE

5. COMPARE THE ALTERNATIVES

6. PERFORM SUPPLEMENTARY ANALYSES
7. SELECT THE PREFERRED ALTERNATIVE

A
1 PROBLEM 1.8
2
3
4
5
6
a
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
b
27
28
c

ACCEPT PROPOSAL: 1
REJECT PROPOSAL: 0
ALT PROP PROP PROP PROP
A
B
C
D
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1

0
0
0
0
1
1
1
1
0
0
0
0
1
1
1
1

0
0
1
1
0
0
1
1
0
0
1
1
0
0
1
1

0
1
0
1
0
1
0
1
0
1
0
1
0
1
0
1

WHY NOT FEASIBLE

B CONTINGENT ON C OR D

A CONTINGENT ON D
NOT BOTH A AND C
A CONTINGENT ON D
NOT BOTH A AND C
B CONTINGENT ON C OR D A CONTINGENT ON D
NOT BOTH A AND C
NOT BOTH A AND C

NONE
1. IDENTIFY THE INVESTMENT ALTERNATIVES

A CONTINGENT ON D

A
B
C
D
E
F
G
H
1 PROBLEM 1.9
2
3
ACCEPT PROPOSAL: 1
REJECT PROPOSAL: 0
4
5
a
ALT PROP PROP PROP PROP PROP
WHY NOT FEASIBLE
6
V
W
X
Y
Z
7
1
0
0
0
0
0
AT LEAST 2 AND NO MORE THAN 4
2
0
0
0
0
1
AT LEAST 2 AND NO MORE THAN 4; Z
8
CONTINGENT ON X OR Y
9
3
0
0
0
1
0
AT LEAST 2 AND NO MORE THAN 4
10
4
0
0
0
1
1
11
5
0
0
1
0
0
AT LEAST 2 AND NO MORE THAN 4
12
6
0
0
1
0
1
13
7
0
0
1
1
0
X AND Y MUTUALLY EXCLUSIVE
14
8
0
0
1
1
1
X AND Y MUTUALLY EXCLUSIVE
15
9
0
1
0
0
0
AT LEAST 2 AND NO MORE THAN 4
16
10
0
1
0
0
1
Z CONTINGENT ON X OR Y
17
11
0
1
0
1
0
18
12
0
1
0
1
1
19
13
0
1
1
0
0
20
14
0
1
1
0
1
21
15
0
1
1
1
0
X AND Y MUTUALLY EXCLUSIVE
22
16
0
1
1
1
1
X AND Y MUTUALLY EXCLUSIVE
23
17
1
0
0
0
0
AT LEAST 2 AND NO MORE THAN 4
24
18
1
0
0
0
1
Z CONTINGENT ON X OR Y
25
19
1
0
0
1
0
NOT V IF W, X, Y
26
20
1
0
0
1
1
NOT V IF W, X, Y
27
21
1
0
1
0
0
NOT V IF W, X, Y
28
22
1
0
1
0
1
NOT V IF W, X, Y
X AND Y MUTUALLY EXCLUSIVE; NOT V
23
1
0
1
1
0
IF W, X, Y
29
X AND Y MUTUALLY EXCLUSIVE; NOT V
24
1
0
1
1
1
IF W, X, Y
30
31
25
1
1
0
0
0
NOT V IF W, X, Y
32
26
1
1
0
0
1
Z CONTINGENT ON X OR Y
33
27
1
1
0
1
0
NOT V IF W, X, Y
34
28
1
1
0
1
1
NOT V IF W, X, Y
35
29
1
1
1
0
0
NOT V IF W, X, Y
36
30
1
1
1
0
1
NOT V IF W, X, Y
X AND Y MUTUALLY EXCLUSIVE; NOT V
31
1
1
1
1
0
IF W, X, Y
37
32
1
1
1
1
1
AT LEAST 2 AND NO MORE THAN 4; X
AND Y MUTUALLY EXCLUSIVE; NOT V IF
38
W, X, Y
39
40
b
NONE
41
42
c
1. IDENTIFY THE INVESTMENT ALTERNATIVES

A
B
C
D
E
F
1 PROBLEM 1.10
2
3
ACCEPT PROPOSAL: 1
REJECT PROPOSAL: 0
4
5
ALTERNATIVE PROPOSAL PROPOSAL PROPOSAL
WHY NOT FEASIBLE
6
P
Q
R
7
8
1
0
0
0
EXACTLY 1 OR 2 CHOSEN
9
2
0
0
1
R CONTINGENT ON P
10
3
0
1
0
11
4
0
1
1
R CONTINGENT ON P
12
5
1
0
0
13
6
1
0
1
14
7
1
1
0
P AND Q MUTUALLY EXCLUSIVE
EXACTLY 1 OR 2 CHOSEN; P AND
8
1
1
1
Q MUTUALLY EXCLUSIVE
15

A
B
C
D
E
F
G
H
1 PROBLEM 1.11
2
3
NOTE TO INSTRUCTOR
4
THIS IS AN INTERESTING PROBLEM, ESPECIALLY WHEN DISCUSSED WITH
5
ITS COMPANION PROBLEM 1.12
6
7
WHAT YOU SHOULD KNOW ABOUT THIS PROBLEM IS:
8
9
THERE IS NO SINGLE CORRECT ANSWER
10
THE EXPECTED VALUE (PROBABILITY-WEIGHTED RETURNS LESS
11
PROBABILITY-WEIGHTED FAILURES) IS THE SAME FOR EACH: $10.00.
12
13
ECONOMICALLY SPEAKING, THE THREE ARE EQUIVALENT
14
ONE WHO SELECTS ALTERNATIVE A IS RISK AVERSE (OR QUITE
15
CONSERVATIVE) - MANY WILL GAMBLE $100 ON B OR C
16
THE STUDENTS SHOULD NOT BE EXPECTED TO DO A PROBABILISTIC
17
ANALYSIS - THEY WILL SEE HOW TO DO THAT IN CHAPTER 13
18
THE STUDENTS SHOULD BE EXPECTED TO DO A "GUT" ANALYSIS - HOW
19
WOULD THEY ACTUALLY DECIDE HERE?
20
21
RETURNED
RETURNED
22
YOU
CHANCE OF TO YOU IF CHANCE OF TO YOU IF EXPECTED
23
ALTERNATIVE INVEST SUCCESS
SUCCESS FAILURE
FAILURE
VALUE
24
A
$100.00
95%
$110.79
5%
$95.00
$10.00
25
B
$100.00
60%
$150.00
40%
$50.00
$10.00
26
C
$100.00
20%
$510.00
80%
$10.00
$10.00
27
28
a
I WOULD SELECT ALTERNATIVE A IF PLAYING THIS ONLY ONCE.
29
30
b
I STILL DON'T LIKE LOSING $50 OR $90.
31
32
c
MAY WISH TO MAKE A CASE FOR 2, 3, 4, 5. NUMBER 9 IS FOR SURE.
33
34
2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE THAT
35
MAXIMIZES ECONOMIC WORTH
4. TWO INVESTMENT ALTERNATIVES ARE EQUIVALENT IF THEY HAVE THE
36
SAME ECONOMIC WORTH
37
5. MARGINAL REVENUE MUST EXCEED MARGINAL COST
38
9. RISKS AND RETURNS TEND TO BE POSITIVELY CORRELATED
39
d
MAY WANT TO MAKE A CASE FOR 6, WITH THE EV ANALYSIS - ALTHOUGH
40
THAT SHOULD NOT BE EXPECTED
41
42
1. IDENTIFY THE INVESTMENT ALTERNATIVES
43
4. ESTIMATE THE CASH FLOWS
44
5. COMPARE THE ALTERNATIVES
45
6. PERFORM SUPPLEMENTARY ANALYSES
46
7. SELECT THE PREFERRED ALTERNATIVE

A
B
C
D
1 PROBLEM 1.12
2
3
NOTE TO INSTRUCTOR
4

THERE IS NO SINGLE CORRECT ANSWER

THE EXPECTED VALUE (PROBABILITY-WEIGHTED RETURNS LESS
PROBABILITY-WEIGHTED FAILURES) IS THE SAME FOR EACH:
$10,000.
ECONOMICALLY SPEAKING, THE THREE ARE EQUIVALENT
ONE WHO SELECTS ALTERNATIVE C IS A RISK SEEKER (OR QUITE
RISK PRONE) - NOT MANY WILL GAMBLE ON B OR C

15
16

THE STUDENTS SHOULD NOT BE EXPECTED TO DO A

PROBABILISTIC ANALYSIS - THEY WILL SEE THAT IN CHAPTER 13

17
18

THE STUDENTS SHOULD BE EXPECTED TO DO A "GUT" ANALYSIS HOW WOULD THEY ACTUALLY DECIDE HERE?

ALT
A
B
C

YOU
CHANCE OF
INVEST
SUCCESS
$100,000.00
95%
$100,000.00
60%
$100,000.00
20%

RETURNED
RETURNED
TO YOU IF CHANCE OF TO YOU IF EXPECTED
SUCCESS FAILURE
FAILURE
VALUE
$110,789.47
5% $95,000.00 $10,000.00
$150,000.00
40% $50,000.00 $10,000.00
$510,000.01
80% $10,000.00 $10,000.00

I WOULD SELECT A

IT HAS A 95% CHANCE OF POCKETING A QUICK PROFIT OF

$10,789.47 WITH ONLY $5,000 DOWNSIDE

MAY WISH TO MAKE A CASE FOR 2, 3, 4, 5. NUMBER 9 IS FOR SURE.

2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE
THAT MAXIMIZES ECONOMIC WORTH
4. TWO INVESTMENT ALTERNATIVES ARE EQUIVALENT IF THEY
HAVE THE SAME ECONOMIC WORTH
5. MARGINAL REVENUE MUST EXCEED MARGINAL COST
9. RISKS AND RETURNS TEND TO BE POSITIVELY CORRELATED

35
36
37
38
39
40
41
42
43
44
45
46

WHAT YOU SHOULD KNOW ABOUT THIS PROBLEM IS:

11
12
13
14

30
31
32
33
34

THIS IS AN INTERESTING PROBLEM, ESPECIALLY WHEN DISCUSSED

WITH ITS COMPANION PROBLEM 1.11.

5
6
7
8
9
10

19
20
21
22
23
24
25
26
27
28
29

MAY WANT TO MAKE A CASE FOR 6, WITH THE EV ANALYSIS ALTHOUGH THAT SHOULD NOT BE EXPECTED
1. IDENTIFY THE INVESTMENT ALTERNATIVES
4. ESTIMATE THE CASH FLOWS
5. COMPARE THE ALTERNATIVES
6. PERFORM SUPPLEMENTARY ANALYSES
7. SELECT THE PREFERRED ALTERNATIVE

A
B
1 PROBLEM 1.13
2
AUTOFOUNDRY SHOULD DO NOTHING AT ALL! THEIR ANALYSIS IS INCORRECT,
a
EVEN IF ALL DATA WERE RIGHT.
3
4
THE MAJOR FLAW IS THAT THE TIME HORIZON IN ONE CASE IS 5 YEARS AND 9 IN
THE OTHER.
5
6
7
2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
8
b
3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE THAT
MAXIMIZES ECONOMIC WORTH
9
4. TWO INVESTMENT ALTERNATIVES ARE EQUIVALENT IF THEY HAVE THE SAME
ECONOMIC WORTH
10
5. MARGINAL REVENUE MUST EXCEED MARGINAL COST
11
8. COMPARE INVESTMENT ALTERNATIVES OVER A COMMON PERIOD OF TIME
(STRONG)
12
13
1. IDENTIFY THE INVESTMENT ALTERNATIVES
14
c
2. DEFINE THE PLANNING HORIZON (STRONG)
15
4. ESTIMATE THE CASH FLOWS
16
5. COMPARE THE ALTERNATIVES
17
7. SELECT THE PREFERRED ALTERNATIVE
18

A
B
1 PROBLEM 1.14
2
USE A 10 YEAR PLANNING HORIZON. THE REASON IS THAT EACH PROJECT IS A ONEa
SHOT ALTERNATIVE AND IN ORDER TO CONSIDER EACH, THE PLANNING HORIZON
MUST MATCH THAT OF THE LONGEST-LIVED PROJECT OR ALTERNATIVE.
3
4
2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
5
b
3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE THAT MAXIMIZES
ECONOMIC WORTH
6
8. COMPARE INVESTMENT ALTERNATIVES OVER A COMMON PERIOD OF TIME
7
8
1. IDENTIFY THE INVESTMENT ALTERNATIVES
9
c
2. DEFINE THE PLANNING HORIZON
10
5. COMPARE THE ALTERNATIVES
11
7. SELECT THE PREFERRED ALTERNATIVE
12

A
1 PROBLEM 1.15
2
a

3
4
5
6
7
8
9
10
11
12

VIRTUALLY ANY PLANNING HORIZON COULD BE SELECTED. MOST LIKELY IT WOULD

BE SOME NUMBER OF YEARS FROM THE SHORTEST-LIVED ALTERNATIVE (4 YEARS)
TO THE LONGEST-LIVED (10 YEARS), ALTHOUGH THIS IS NOT NECESSARILY SO. THE
DECISION MAKER MUST FIRST ASK "OVER WHAT PERIOD OF TIME DO I WANT TO
MAKE THE BEST DECISION?" FOR ANY SELECTED PLANNING HORIZON, SAY 6 YEARS
FOR EXAMPLE, THE 4 YEAR ALTERNATIVE REQUIRES SPECIFICATION OF WHAT WILL
HAPPEN IN YEARS 5 AND 6 (SUCH AS REPAVING) AND THEN WILL REQUIRE
ESTIMATION OF A RESIDUAL OR SALVAGE VALUE AT THE END OF YEAR 6. IN THE
CASE OF THE RV HOOK UPS, A RESIDUAL OR SALVAGE VALUE WOULD NEED TO BE
ESTIMATED AT THE END OF 6 YEARS TO PROPERLY REFLECT THE REMAINING VALUE
IN THAT ALTERNATIVE AFTER THE 6 YEAR PLANNING HORIZON. SIMILAR THINKING IS
REQUIRED FOR ANY OTHER PLANNING HORIZON SELECTED.
b.

2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED

3. CHOOSE THE MUTUALLY EXCLUSIVE INVESTMENT ALTERNATIVE THAT MAXIMIZES
ECONOMIC WORTH
8. COMPARE INVESTMENT ALTERNATIVES OVER A COMMON PERIOD OF TIME

c.

1. IDENTIFY THE INVESTMENT ALTERNATIVES

2. DEFINE THE PLANNING HORIZON
5. COMPARE THE ALTERNATIVES
7. SELECT THE PREFERRED ALTERNATIVE

A
B
C D
E F G
H
I
J
K
L
M
1 PROBLEM 1.16
2
3
a
BC
CI
SW
WC
4
FACTOR WT RT SC RT SC RT SC RT SC
5
P
20 9.2 184 10 200 6.7 134 8.2 164
6
Q
30 10 300 7 210 8 240 6 180
7
D
25 9 225 7 175 10 250 7 175
8
R
15 6 90 5 75 7 105 10 150
9
E
10 8 80 9 90 6 60 10 100
10
11
TOTALS
879
750
789
769
12
b
QUALITY (Q), DELIVERY (D), AND RELIABILITY (R) ARE ALL BETTER
FOR BC THAN FOR CI. THEY OVERCAME THE $85,000 - $79,000 =
$6,000 PRICE DIFFERENCE OF CI OVER BC. THEREFORE, THEY MUST
13
BE WORTH AT LEAST $6,000.
14
15
c
2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
16
17
d
1. IDENTIFY THE INVESTMENT ALTERNATIVES
18
5. COMPARE THE ALTERNATIVES
19
7. SELECT THE PREFERRED ALTERNATIVE

A
B
C D
E
F
G H
I
J
K
L
M
1 PROBLEM 1.17 NOTE! THIS PROBLEM IS SIMILAR TO EXAMPLE 1.8
2
3
a
A
B
C
D
4
FACTOR WT RT SC RT SC RT SC RT SC
5
PW
35 6.3 220.5 10 350 7.5 262.5 8.8 308
6
PP
40 9.1 364 7.7 308 10 400 5.8 232
7
RL
25 7.5 187.5 9 225 9
225 10 250
8
9
TOTALS
772
883
887.5
790
10
11
RECOMMEND ALTERNATIVE C BY A SMALL MARGIN OVER B
12
b
PAYBACK PERIOD WAS THE DIFFERENCE MAKER IN SELECTING C OVER
B, EVEN THOUGH B HAD A HIGHER PRESENT WORTH ($300,000) THAN C
($225,000) FOR A DIFFERENCE OF $75,000. PAYBACK PERIOD FROM 3 TO 1
13
YEARS MUST BE WORTH AT LEAST $75,000 TO THE COMPANY.
14
15
c
2. MAKE INVESTMENTS THAT ARE ECONOMICALLY JUSTIFIED
16
17
d
1. IDENTIFY THE INVESTMENT ALTERNATIVES
18
5. COMPARE THE ALTERNATIVES
19
7. SELECT THE PREFERRED ALTERNATIVE

A
1 PROBLEM 1.18
2
3
4
5
6
7
8
9
10
11
12
13
a
14
15
16
17
18
19
20
b
21

COST/GAL G1=
COST/GAL G2=
% BLUE G1=
% BLUE G2=

$7.50
$13.50
11.00%
22.00%

DESIRED % BLUE
X=
1-X=

18.00%
PROPORTION OF G1 USED IN FINAL MIXTURE
PROPORTION OF G2 USED IN FINAL MIXTURE

SOLVING FOR X
% BLUE FORMULA=
18.00% =11%*X+22%*(1-X)
REARRANGING TERMS=
11%*X=4%
X=
36.36% =(22.00%-18.00%)/(22.00%-11.00%)
1-X=
63.64% =1-36.36%
USE 36.36% OF G1 AND 63.64% OF G2 IN THE FINAL PAINT MIXTURE
COST EQUATION
COST=

$11.32 =7.5*36.36%+13.5*(1-36.36%)

A
1 PROBLEM 1.19
2
3
4
5
6
7
8
9
10
11
12
a
13
14
15
16
17
18
b
19
20
21
22
23
24
25
c

ORDER SIZE=
OLD MATERIAL COST/UNIT=
OLD LABOR COST/UNIT=
NEW MATERIAL COST/UNIT=
NEW LABOR COST/UNIT=
ADDITIONAL TOOLING COST=

500,000 UNITS
$0.75
$0.25
$0.52
$0.16
$90,000.00

TOTAL COST = MATERIAL COST + LABOR COST + NON-FACTORY COST

CONTINUE OLD METHOD
MATERIAL COST=
LABOR COST=
NON-FACTORY COST=
TOTAL COST=

$187,500.00
$62,500.00
$125,000.00
$375,000.00

=(500000/2)*0.75
=(500000/2)*0.25
=2*62500
=187500+62500+125000

SWITCH TO NEW METHOD

NEW TOOLING COST=
MATERIAL COST=
NEW LABOR COST/UNIT=
NON-FACTORY COST=
TOTAL COST=

$90,000.00
$130,000.00
$40,000.00
$80,000.00
$340,000.00

=90000
=(500000/2)*0.52
=(500000/2)*0.16
=2*40000
=90000+130000+40000+80000

SWITCH TO THE NEW METHOD - LESS COSTLY

A
1 PROBLEM 1.20
2
3
4
5
6
7
8
9
10
11
12
a
13
14
15
16
17
18
19
b
20

COST/GAL A=
COST/GAL B=
% CRANBERRY A=
% CRANBERRY B=

$1.00
$2.50
12.50%
20.00%

DESIRED % CRANBERRY
X=
1-X=

15.50%
PROPORTION OF CRANBERRY A USED IN FINAL MIXTURE
PROPORTION OF CRANBERRY B USED IN FINAL MIXTURE

SOLVING FOR X
% CRANBERRY FORMULA
15.50% =12.5%*X+20%*(1-X)
REARRANGING TERMS=
7.5%*X=4.5%
X=
60.00% =(20.00%-15.50%)/(20.00%-12.50%)
1-X=
40.00% =1-60%
USE 60.0% OF A AND 40.0% OF B IN THE FINAL CRANBERRY MIXTURE
COST EQUATION
COST/GAL=

$1.60 =1*60%+2.5*(1-60%)

A
1 PROBLEM 1.21
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

COST OF RAW MAT'L A PER LB=

COST OF RAW MAT'L B PER LB=
COST OF RAW MAT'L C PER LB=

$5.18
$1.61
$2.82
ALTERNATIVE 1 ALTERNATIVE 2 ALTERNATIVE 3

COST OF RAW MAT'L A PER UNIT=

LBS/UNIT=
COST A/UNIT CALCULATIONS ARE=
COST A/UNIT=

0.050
=$5.18*0.05
$0.2590

0.070
=$5.18*0.07
$0.3626

0.075
=$5.18*0.075
$0.3885

COST OF RAW MAT'L B PER UNIT=

LBS/UNIT=
COST B/UNIT CALCULATIONS ARE=
COST B/UNIT=

0.190
=$1.61*0.190
$0.3059

0.180
=$1.61*0.180
$0.2898

0.260
=$1.61*0.260
$0.4186

COST OF RAW MAT'L C PER UNIT=

LBS/UNIT=
COST C/UNIT CALCULATIONS ARE=
COST C/UNIT=

0.140
=$2.82*0.140
$0.3948

0.120
=$2.82*0.120
$0.3384

0.170
=$2.82*0.170
$0.4794

TOTAL RAW MAT'L COST/UNIT

$0.9597

$0.9908

$1.2865

OTHER COSTS/UNIT

$0.2400

$0.3600

$0.3400

TOTAL COSTS/UNIT=

$1.1997

$1.3508

$1.6265

PRICE/UNIT=

$1.4300

$1.5800

$1.8800

PROFIT/UNIT

$0.2303

$0.2292

$0.2535

SALES VOLUME=

1,000,000

1,250,000

TOTAL PROFIT=

$230,300

$286,500

SELECT ALTERNATIVE 2 TO MAXIMIZE PROFIT

800,000
$202,800

A
1 PROBLEM 1.22
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
a
18
19
b

LABOR COST PER ACCEPTABLE UNIT

$1.40

COST OF MATERIAL PER UNIT

$5.50

PRODUCTION RATE
REJECTION RATE
ACCEPTABLE UNITS

100
3.00%
97

125
150
8.00% 20.00%
115
120

LABOR COST AT $1.40/ACCEPTABLE UNIT

COST OF MATERIAL AT $5.50 PER UNIT

$135.80 $161.00 $168.00

$550.00 $687.50 $825.00

TOTAL DAILY COSTS

COST PER ACCEPTABLE UNIT

$685.80 $848.50 $993.00

$7.07
$7.38
$8.28

WORKERS PREFER 150 UNIT PRODUCTION RATE TO MAX DAILY PAY AT $168.00
PRODUCTION RATE FOR LOWEST UNIT COST PER ACCEPTABLE UNIT IS 100 UNITS

ORDER SIZE
COMPARING M1 TO M2:
300+9X=750+3X
6X=450
X=75
COMPARING M1 TO M3
300+9X=500+5X
4X=200
X=50
COMPARING M2 TO M3
750+3X=500+5X
2X=250
X=125

M1 PREFERRED TO M2 AT 75 OR LESS
M2 PREFERRED TO M1 AT 75 OR MORE

M1 PREFERRED TO M3 AT 50 OR LESS
M3 PREFERRED TO M1 AT 50 OR MORE

M3 PREFERRED TO M2 AT 125 OR LESS

M2 PREFERRED TO M3 AT 125 OR MORE

USE M1 FOR X OF 0 TO 50
USE M3 FOR X OF 50 TO 125
USE M2 FOR X OF 125 OR MORE
GRAPHICAL REPRESENTATION OF BREAKEVEN POINTS
THIS GRAPH WAS DEVELOPED FROM THE TABLE OF COSTS AFTER PART c
$2,500.00
$2,000.00
$1,500.00

TOOL M1
TOOL M2

$1,000.00

TOOL M3

$500.00
$0.00

FOR X=75 USE M3 FOR $875

=500+5*75

FOR X=160 USE M2 FOR $1230

IF NOT AVAILABLE, USE M3 FOR $1300

=750+3*160
=500+5*160
PENALTY IS $70 EXTRA OVER M2

IF NEITHER AVAILABLE, USE M1 FOR $1740 =300+9*160

PENALTY IS $510 EXTRA OVER M2
PENALTY IS $440 EXTRA OVER M3

SEE COMPLETE TABLE OF COSTS BELOW

1
13
25
37
49
61
73
85
97
109
121
133
145
157
169
181
193

A
1 PROBLEM 1.23
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
a
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
b
47
48
c
49
50
51
52
53
54
55
56
57

A
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114

FIXED COST=
VARIABLE COST/UNIT=

ORDER SIZE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

C
D
E
MACHINE MACHINE MACHINE
TOOL M1 TOOL M2 TOOL M3
$300.00 $750.00 $500.00
$9.00
$3.00
$5.00
MACHINE MACHINE MACHINE
TOOL M1 TOOL M2 TOOL M3
$309.00 $753.00 $505.00
$318.00 $756.00 $510.00
$327.00 $759.00 $515.00
$336.00 $762.00 $520.00
$345.00 $765.00 $525.00
$354.00 $768.00 $530.00
$363.00 $771.00 $535.00
$372.00 $774.00 $540.00
$381.00 $777.00 $545.00
$390.00 $780.00 $550.00
$399.00 $783.00 $555.00
$408.00 $786.00 $560.00
$417.00 $789.00 $565.00
$426.00 $792.00 $570.00
$435.00 $795.00 $575.00
$444.00 $798.00 $580.00
$453.00 $801.00 $585.00
$462.00 $804.00 $590.00
$471.00 $807.00 $595.00
$480.00 $810.00 $600.00
$489.00 $813.00 $605.00
$498.00 $816.00 $610.00
$507.00 $819.00 $615.00
$516.00 $822.00 $620.00
$525.00 $825.00 $625.00
$534.00 $828.00 $630.00
$543.00 $831.00 $635.00
$552.00 $834.00 $640.00
$561.00 $837.00 $645.00
$570.00 $840.00 $650.00
$579.00 $843.00 $655.00
$588.00 $846.00 $660.00
$597.00 $849.00 $665.00
$606.00 $852.00 $670.00
$615.00 $855.00 $675.00
$624.00 $858.00 $680.00
$633.00 $861.00 $685.00
$642.00 $864.00 $690.00
$651.00 $867.00 $695.00
$660.00 $870.00 $700.00
$669.00 $873.00 $705.00
$678.00 $876.00 $710.00
$687.00 $879.00 $715.00
$696.00 $882.00 $720.00
$705.00 $885.00 $725.00
$714.00 $888.00 $730.00
$723.00 $891.00 $735.00
$732.00 $894.00 $740.00
$741.00 $897.00 $745.00
$750.00 $900.00 $750.00

A
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171

B
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107

C
$759.00
$768.00
$777.00
$786.00
$795.00
$804.00
$813.00
$822.00
$831.00
$840.00
$849.00
$858.00
$867.00
$876.00
$885.00
$894.00
$903.00
$912.00
$921.00
$930.00
$939.00
$948.00
$957.00
$966.00
$975.00
$984.00
$993.00
$1,002.00
$1,011.00
$1,020.00
$1,029.00
$1,038.00
$1,047.00
$1,056.00
$1,065.00
$1,074.00
$1,083.00
$1,092.00
$1,101.00
$1,110.00
$1,119.00
$1,128.00
$1,137.00
$1,146.00
$1,155.00
$1,164.00
$1,173.00
$1,182.00
$1,191.00
$1,200.00
$1,209.00
$1,218.00
$1,227.00
$1,236.00
$1,245.00
$1,254.00
$1,263.00

D
$903.00
$906.00
$909.00
$912.00
$915.00
$918.00
$921.00
$924.00
$927.00
$930.00
$933.00
$936.00
$939.00
$942.00
$945.00
$948.00
$951.00
$954.00
$957.00
$960.00
$963.00
$966.00
$969.00
$972.00
$975.00
$978.00
$981.00
$984.00
$987.00
$990.00
$993.00
$996.00
$999.00
$1,002.00
$1,005.00
$1,008.00
$1,011.00
$1,014.00
$1,017.00
$1,020.00
$1,023.00
$1,026.00
$1,029.00
$1,032.00
$1,035.00
$1,038.00
$1,041.00
$1,044.00
$1,047.00
$1,050.00
$1,053.00
$1,056.00
$1,059.00
$1,062.00
$1,065.00
$1,068.00
$1,071.00

E
$755.00
$760.00
$765.00
$770.00
$775.00
$780.00
$785.00
$790.00
$795.00
$800.00
$805.00
$810.00
$815.00
$820.00
$825.00
$830.00
$835.00
$840.00
$845.00
$850.00
$855.00
$860.00
$865.00
$870.00
$875.00
$880.00
$885.00
$890.00
$895.00
$900.00
$905.00
$910.00
$915.00
$920.00
$925.00
$930.00
$935.00
$940.00
$945.00
$950.00
$955.00
$960.00
$965.00
$970.00
$975.00
$980.00
$985.00
$990.00
$995.00
$1,000.00
$1,005.00
$1,010.00
$1,015.00
$1,020.00
$1,025.00
$1,030.00
$1,035.00

A
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228

B
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164

C
$1,272.00
$1,281.00
$1,290.00
$1,299.00
$1,308.00
$1,317.00
$1,326.00
$1,335.00
$1,344.00
$1,353.00
$1,362.00
$1,371.00
$1,380.00
$1,389.00
$1,398.00
$1,407.00
$1,416.00
$1,425.00
$1,434.00
$1,443.00
$1,452.00
$1,461.00
$1,470.00
$1,479.00
$1,488.00
$1,497.00
$1,506.00
$1,515.00
$1,524.00
$1,533.00
$1,542.00
$1,551.00
$1,560.00
$1,569.00
$1,578.00
$1,587.00
$1,596.00
$1,605.00
$1,614.00
$1,623.00
$1,632.00
$1,641.00
$1,650.00
$1,659.00
$1,668.00
$1,677.00
$1,686.00
$1,695.00
$1,704.00
$1,713.00
$1,722.00
$1,731.00
$1,740.00
$1,749.00
$1,758.00
$1,767.00
$1,776.00

D
$1,074.00
$1,077.00
$1,080.00
$1,083.00
$1,086.00
$1,089.00
$1,092.00
$1,095.00
$1,098.00
$1,101.00
$1,104.00
$1,107.00
$1,110.00
$1,113.00
$1,116.00
$1,119.00
$1,122.00
$1,125.00
$1,128.00
$1,131.00
$1,134.00
$1,137.00
$1,140.00
$1,143.00
$1,146.00
$1,149.00
$1,152.00
$1,155.00
$1,158.00
$1,161.00
$1,164.00
$1,167.00
$1,170.00
$1,173.00
$1,176.00
$1,179.00
$1,182.00
$1,185.00
$1,188.00
$1,191.00
$1,194.00
$1,197.00
$1,200.00
$1,203.00
$1,206.00
$1,209.00
$1,212.00
$1,215.00
$1,218.00
$1,221.00
$1,224.00
$1,227.00
$1,230.00
$1,233.00
$1,236.00
$1,239.00
$1,242.00

E
$1,040.00
$1,045.00
$1,050.00
$1,055.00
$1,060.00
$1,065.00
$1,070.00
$1,075.00
$1,080.00
$1,085.00
$1,090.00
$1,095.00
$1,100.00
$1,105.00
$1,110.00
$1,115.00
$1,120.00
$1,125.00
$1,130.00
$1,135.00
$1,140.00
$1,145.00
$1,150.00
$1,155.00
$1,160.00
$1,165.00
$1,170.00
$1,175.00
$1,180.00
$1,185.00
$1,190.00
$1,195.00
$1,200.00
$1,205.00
$1,210.00
$1,215.00
$1,220.00
$1,225.00
$1,230.00
$1,235.00
$1,240.00
$1,245.00
$1,250.00
$1,255.00
$1,260.00
$1,265.00
$1,270.00
$1,275.00
$1,280.00
$1,285.00
$1,290.00
$1,295.00
$1,300.00
$1,305.00
$1,310.00
$1,315.00
$1,320.00

A
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264

B
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200

C
$1,785.00
$1,794.00
$1,803.00
$1,812.00
$1,821.00
$1,830.00
$1,839.00
$1,848.00
$1,857.00
$1,866.00
$1,875.00
$1,884.00
$1,893.00
$1,902.00
$1,911.00
$1,920.00
$1,929.00
$1,938.00
$1,947.00
$1,956.00
$1,965.00
$1,974.00
$1,983.00
$1,992.00
$2,001.00
$2,010.00
$2,019.00
$2,028.00
$2,037.00
$2,046.00
$2,055.00
$2,064.00
$2,073.00
$2,082.00
$2,091.00
$2,100.00

D
$1,245.00
$1,248.00
$1,251.00
$1,254.00
$1,257.00
$1,260.00
$1,263.00
$1,266.00
$1,269.00
$1,272.00
$1,275.00
$1,278.00
$1,281.00
$1,284.00
$1,287.00
$1,290.00
$1,293.00
$1,296.00
$1,299.00
$1,302.00
$1,305.00
$1,308.00
$1,311.00
$1,314.00
$1,317.00
$1,320.00
$1,323.00
$1,326.00
$1,329.00
$1,332.00
$1,335.00
$1,338.00
$1,341.00
$1,344.00
$1,347.00
$1,350.00

E
$1,325.00
$1,330.00
$1,335.00
$1,340.00
$1,345.00
$1,350.00
$1,355.00
$1,360.00
$1,365.00
$1,370.00
$1,375.00
$1,380.00
$1,385.00
$1,390.00
$1,395.00
$1,400.00
$1,405.00
$1,410.00
$1,415.00
$1,420.00
$1,425.00
$1,430.00
$1,435.00
$1,440.00
$1,445.00
$1,450.00
$1,455.00
$1,460.00
$1,465.00
$1,470.00
$1,475.00
$1,480.00
$1,485.00
$1,490.00
$1,495.00
$1,500.00

A
B
C
D
E
F
G
1 PROBLEM 1.24
2
3
a
AVERAGE
TOTAL COST
4
SQUARE FEET FLOORS TOTAL COST COST PER FLOOR
DECREASE
5
6
400,000
1
$112,800,000.00
$112,800,000.00
N/A
7
400,000
2
$73,600,000.00
$36,800,000.00 $39,200,000.00
8
400,000
3
$61,066,666.67
$20,355,555.56 $12,533,333.33
9
400,000
4
$55,200,000.00
$13,800,000.00 $5,866,666.67
10
400,000
5
$52,000,000.00
$10,400,000.00 $3,200,000.00
11
400,000
6
$50,133,333.33
$8,355,555.56 $1,866,666.67
12
400,000
7
$49,028,571.43
$7,004,081.63 $1,104,761.90
13
400,000
8
$48,400,000.00
$6,050,000.00
$628,571.43
14
400,000
9
$48,088,888.89
$5,343,209.88
$311,111.11
15
400,000
10
$48,000,000.00
$4,800,000.00
$88,888.89 ***
16
400,000
11
$48,072,727.27
$4,370,247.93
-$72,727.27
17
400,000
12
$48,266,666.67
$4,022,222.22
-$193,939.39
18
19
b
*** OPTIMUM IS 10 FLOORS
20
21
c
TC=
(200+80X+2(X^2))(400,000/X)NOTE THAT A=400,000/X
22
23
dTC/dX=
(80+4X)(400,000/X)+(200+80X+2(X^2))(-400,000/X^2)=0
24
25
800,000-80,000,000/X^2=0
26
27
X^2=80,000,000/800,000=100
28
29
X=10
30
31
THIS AGREES WITH THE 10 FLOORS SPECIFIED IN THE TABLE.

1
26
51
76
101
126
151
176
201
226
251
276
301
326
351
376
401
426
451
476
501
526
551
576
601

A
B
C
D
E
F
G
H
1 PROBLEM 1.25
2
3
a
ENGINE LATHE EQN
TC=$7Q
4
TURRET LATHE EQN
TC=$120N+5.25Q
5
6
N=1 FOR Q=1 TO 300
7
N=2 FOR Q=301 TO 600, ETC.
8
9
SETTING THE TWO TC EQUATIONS EQUAL FOR N=1,
10
$7Q=$120+$5.25Q
11
1.75Q=120
12
13
Q=120/1.75=
68.57 UNITS
USE ENGINE LATHE IF Q=68 OR LESS
14
USE TURRET LATHE IF Q=69 TO 300
15
16
SETTING THE TWO EQUATIONS EQUAL FOR N=2,
17
$7Q=$240+$5.25Q
18
1.75Q=240
19
20
Q=240/1.75=
137.14 UNITS
SINCE THIS IS BELOW 301,
21
USE TURRET LATHE IF Q=301 TO 600
22
23
GRAPHICAL REPRESENTATION OF BREAKEVEN POINT
24
THIS GRAPH WAS DEVELOPED FROM THE TABLE OF COSTS AFTER PART c
25
26
27
$4,500.00
28
29
30
$4,000.00
31
32
$3,500.00
33
34
$3,000.00
35
36
$2,500.00
37
ENGINE L
38
39
$2,000.00
TURRET L
40
41
$1,500.00
42
43
$1,000.00
44
45
$500.00
46
47
48
$0.00
49
50
51
52
53
b
Q=
68 UNITS
54
N=
1 SETUP
55
TC(ENGINE LATHE)=
$476.00 =7*68
56
TC(TURRET LATHE)=
$477.00 =120*1+5.25*68
57
USE ENGINE LATHE FOR Q=68

A
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114

B
Q=
N=
ENGINE LATHE TC=
TURRET LATHE TC=
SAVINGS WITH TURRET LATHE=

C
400
2
$2,800.00
$2,340.00
$460.00

UNITS
SETUPS
=7*400
=120*2+5.25*400
=2800-2340

BRUTE FORCE TABLE OF COSTS FOR Q FROM 0 TO 600

Q
N
ENGINE L TURRET L
0
1
$0.00
$120.00
1
1
$7.00
$125.25
2
1
$14.00
$130.50
3
1
$21.00
$135.75
4
1
$28.00
$141.00
5
1
$35.00
$146.25
6
1
$42.00
$151.50
7
1
$49.00
$156.75
8
1
$56.00
$162.00
9
1
$63.00
$167.25
10
1
$70.00
$172.50
11
1
$77.00
$177.75
12
1
$84.00
$183.00
13
1
$91.00
$188.25
14
1
$98.00
$193.50
15
1
$105.00 $198.75
16
1
$112.00 $204.00
17
1
$119.00 $209.25
18
1
$126.00 $214.50
19
1
$133.00 $219.75
20
1
$140.00 $225.00
21
1
$147.00 $230.25
22
1
$154.00 $235.50
23
1
$161.00 $240.75
24
1
$168.00 $246.00
25
1
$175.00 $251.25
26
1
$182.00 $256.50
27
1
$189.00 $261.75
28
1
$196.00 $267.00
29
1
$203.00 $272.25
30
1
$210.00 $277.50
31
1
$217.00 $282.75
32
1
$224.00 $288.00
33
1
$231.00 $293.25
34
1
$238.00 $298.50
35
1
$245.00 $303.75
36
1
$252.00 $309.00
37
1
$259.00 $314.25
38
1
$266.00 $319.50
39
1
$273.00 $324.75
40
1
$280.00 $330.00
41
1
$287.00 $335.25
42
1
$294.00 $340.50
43
1
$301.00 $345.75
44
1
$308.00 $351.00
45
1
$315.00 $356.25
46
1
$322.00 $361.50

A
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171

C
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103

D
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

E
$329.00
$336.00
$343.00
$350.00
$357.00
$364.00
$371.00
$378.00
$385.00
$392.00
$399.00
$406.00
$413.00
$420.00
$427.00
$434.00
$441.00
$448.00
$455.00
$462.00
$469.00
$476.00
$483.00
$490.00
$497.00
$504.00
$511.00
$518.00
$525.00
$532.00
$539.00
$546.00
$553.00
$560.00
$567.00
$574.00
$581.00
$588.00
$595.00
$602.00
$609.00
$616.00
$623.00
$630.00
$637.00
$644.00
$651.00
$658.00
$665.00
$672.00
$679.00
$686.00
$693.00
$700.00
$707.00
$714.00
$721.00

F
$366.75
$372.00
$377.25
$382.50
$387.75
$393.00
$398.25
$403.50
$408.75
$414.00
$419.25
$424.50
$429.75
$435.00
$440.25
$445.50
$450.75
$456.00
$461.25
$466.50
$471.75
$477.00
$482.25
$487.50
$492.75
$498.00
$503.25
$508.50
$513.75
$519.00
$524.25
$529.50
$534.75
$540.00
$545.25
$550.50
$555.75
$561.00
$566.25
$571.50
$576.75
$582.00
$587.25
$592.50
$597.75
$603.00
$608.25
$613.50
$618.75
$624.00
$629.25
$634.50
$639.75
$645.00
$650.25
$655.50
$660.75

A
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228

C
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160

D
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

E
$728.00
$735.00
$742.00
$749.00
$756.00
$763.00
$770.00
$777.00
$784.00
$791.00
$798.00
$805.00
$812.00
$819.00
$826.00
$833.00
$840.00
$847.00
$854.00
$861.00
$868.00
$875.00
$882.00
$889.00
$896.00
$903.00
$910.00
$917.00
$924.00
$931.00
$938.00
$945.00
$952.00
$959.00
$966.00
$973.00
$980.00
$987.00
$994.00
$1,001.00
$1,008.00
$1,015.00
$1,022.00
$1,029.00
$1,036.00
$1,043.00
$1,050.00
$1,057.00
$1,064.00
$1,071.00
$1,078.00
$1,085.00
$1,092.00
$1,099.00
$1,106.00
$1,113.00
$1,120.00

F
$666.00
$671.25
$676.50
$681.75
$687.00
$692.25
$697.50
$702.75
$708.00
$713.25
$718.50
$723.75
$729.00
$734.25
$739.50
$744.75
$750.00
$755.25
$760.50
$765.75
$771.00
$776.25
$781.50
$786.75
$792.00
$797.25
$802.50
$807.75
$813.00
$818.25
$823.50
$828.75
$834.00
$839.25
$844.50
$849.75
$855.00
$860.25
$865.50
$870.75
$876.00
$881.25
$886.50
$891.75
$897.00
$902.25
$907.50
$912.75
$918.00
$923.25
$928.50
$933.75
$939.00
$944.25
$949.50
$954.75
$960.00

A
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285

C
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217

D
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

E
$1,127.00
$1,134.00
$1,141.00
$1,148.00
$1,155.00
$1,162.00
$1,169.00
$1,176.00
$1,183.00
$1,190.00
$1,197.00
$1,204.00
$1,211.00
$1,218.00
$1,225.00
$1,232.00
$1,239.00
$1,246.00
$1,253.00
$1,260.00
$1,267.00
$1,274.00
$1,281.00
$1,288.00
$1,295.00
$1,302.00
$1,309.00
$1,316.00
$1,323.00
$1,330.00
$1,337.00
$1,344.00
$1,351.00
$1,358.00
$1,365.00
$1,372.00
$1,379.00
$1,386.00
$1,393.00
$1,400.00
$1,407.00
$1,414.00
$1,421.00
$1,428.00
$1,435.00
$1,442.00
$1,449.00
$1,456.00
$1,463.00
$1,470.00
$1,477.00
$1,484.00
$1,491.00
$1,498.00
$1,505.00
$1,512.00
$1,519.00

F
$965.25
$970.50
$975.75
$981.00
$986.25
$991.50
$996.75
$1,002.00
$1,007.25
$1,012.50
$1,017.75
$1,023.00
$1,028.25
$1,033.50
$1,038.75
$1,044.00
$1,049.25
$1,054.50
$1,059.75
$1,065.00
$1,070.25
$1,075.50
$1,080.75
$1,086.00
$1,091.25
$1,096.50
$1,101.75
$1,107.00
$1,112.25
$1,117.50
$1,122.75
$1,128.00
$1,133.25
$1,138.50
$1,143.75
$1,149.00
$1,154.25
$1,159.50
$1,164.75
$1,170.00
$1,175.25
$1,180.50
$1,185.75
$1,191.00
$1,196.25
$1,201.50
$1,206.75
$1,212.00
$1,217.25
$1,222.50
$1,227.75
$1,233.00
$1,238.25
$1,243.50
$1,248.75
$1,254.00
$1,259.25

A
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342

C
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274

D
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

E
$1,526.00
$1,533.00
$1,540.00
$1,547.00
$1,554.00
$1,561.00
$1,568.00
$1,575.00
$1,582.00
$1,589.00
$1,596.00
$1,603.00
$1,610.00
$1,617.00
$1,624.00
$1,631.00
$1,638.00
$1,645.00
$1,652.00
$1,659.00
$1,666.00
$1,673.00
$1,680.00
$1,687.00
$1,694.00
$1,701.00
$1,708.00
$1,715.00
$1,722.00
$1,729.00
$1,736.00
$1,743.00
$1,750.00
$1,757.00
$1,764.00
$1,771.00
$1,778.00
$1,785.00
$1,792.00
$1,799.00
$1,806.00
$1,813.00
$1,820.00
$1,827.00
$1,834.00
$1,841.00
$1,848.00
$1,855.00
$1,862.00
$1,869.00
$1,876.00
$1,883.00
$1,890.00
$1,897.00
$1,904.00
$1,911.00
$1,918.00

F
$1,264.50
$1,269.75
$1,275.00
$1,280.25
$1,285.50
$1,290.75
$1,296.00
$1,301.25
$1,306.50
$1,311.75
$1,317.00
$1,322.25
$1,327.50
$1,332.75
$1,338.00
$1,343.25
$1,348.50
$1,353.75
$1,359.00
$1,364.25
$1,369.50
$1,374.75
$1,380.00
$1,385.25
$1,390.50
$1,395.75
$1,401.00
$1,406.25
$1,411.50
$1,416.75
$1,422.00
$1,427.25
$1,432.50
$1,437.75
$1,443.00
$1,448.25
$1,453.50
$1,458.75
$1,464.00
$1,469.25
$1,474.50
$1,479.75
$1,485.00
$1,490.25
$1,495.50
$1,500.75
$1,506.00
$1,511.25
$1,516.50
$1,521.75
$1,527.00
$1,532.25
$1,537.50
$1,542.75
$1,548.00
$1,553.25
$1,558.50

A
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399

C
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331

D
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$1,925.00
$1,932.00
$1,939.00
$1,946.00
$1,953.00
$1,960.00
$1,967.00
$1,974.00
$1,981.00
$1,988.00
$1,995.00
$2,002.00
$2,009.00
$2,016.00
$2,023.00
$2,030.00
$2,037.00
$2,044.00
$2,051.00
$2,058.00
$2,065.00
$2,072.00
$2,079.00
$2,086.00
$2,093.00
$2,100.00
$2,107.00
$2,114.00
$2,121.00
$2,128.00
$2,135.00
$2,142.00
$2,149.00
$2,156.00
$2,163.00
$2,170.00
$2,177.00
$2,184.00
$2,191.00
$2,198.00
$2,205.00
$2,212.00
$2,219.00
$2,226.00
$2,233.00
$2,240.00
$2,247.00
$2,254.00
$2,261.00
$2,268.00
$2,275.00
$2,282.00
$2,289.00
$2,296.00
$2,303.00
$2,310.00
$2,317.00

F
$1,563.75
$1,569.00
$1,574.25
$1,579.50
$1,584.75
$1,590.00
$1,595.25
$1,600.50
$1,605.75
$1,611.00
$1,616.25
$1,621.50
$1,626.75
$1,632.00
$1,637.25
$1,642.50
$1,647.75
$1,653.00
$1,658.25
$1,663.50
$1,668.75
$1,674.00
$1,679.25
$1,684.50
$1,689.75
$1,695.00
$1,820.25
$1,825.50
$1,830.75
$1,836.00
$1,841.25
$1,846.50
$1,851.75
$1,857.00
$1,862.25
$1,867.50
$1,872.75
$1,878.00
$1,883.25
$1,888.50
$1,893.75
$1,899.00
$1,904.25
$1,909.50
$1,914.75
$1,920.00
$1,925.25
$1,930.50
$1,935.75
$1,941.00
$1,946.25
$1,951.50
$1,956.75
$1,962.00
$1,967.25
$1,972.50
$1,977.75

A
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
454
455
456

C
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388

D
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$2,324.00
$2,331.00
$2,338.00
$2,345.00
$2,352.00
$2,359.00
$2,366.00
$2,373.00
$2,380.00
$2,387.00
$2,394.00
$2,401.00
$2,408.00
$2,415.00
$2,422.00
$2,429.00
$2,436.00
$2,443.00
$2,450.00
$2,457.00
$2,464.00
$2,471.00
$2,478.00
$2,485.00
$2,492.00
$2,499.00
$2,506.00
$2,513.00
$2,520.00
$2,527.00
$2,534.00
$2,541.00
$2,548.00
$2,555.00
$2,562.00
$2,569.00
$2,576.00
$2,583.00
$2,590.00
$2,597.00
$2,604.00
$2,611.00
$2,618.00
$2,625.00
$2,632.00
$2,639.00
$2,646.00
$2,653.00
$2,660.00
$2,667.00
$2,674.00
$2,681.00
$2,688.00
$2,695.00
$2,702.00
$2,709.00
$2,716.00

F
$1,983.00
$1,988.25
$1,993.50
$1,998.75
$2,004.00
$2,009.25
$2,014.50
$2,019.75
$2,025.00
$2,030.25
$2,035.50
$2,040.75
$2,046.00
$2,051.25
$2,056.50
$2,061.75
$2,067.00
$2,072.25
$2,077.50
$2,082.75
$2,088.00
$2,093.25
$2,098.50
$2,103.75
$2,109.00
$2,114.25
$2,119.50
$2,124.75
$2,130.00
$2,135.25
$2,140.50
$2,145.75
$2,151.00
$2,156.25
$2,161.50
$2,166.75
$2,172.00
$2,177.25
$2,182.50
$2,187.75
$2,193.00
$2,198.25
$2,203.50
$2,208.75
$2,214.00
$2,219.25
$2,224.50
$2,229.75
$2,235.00
$2,240.25
$2,245.50
$2,250.75
$2,256.00
$2,261.25
$2,266.50
$2,271.75
$2,277.00

A
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
512
513

C
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445

D
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$2,723.00
$2,730.00
$2,737.00
$2,744.00
$2,751.00
$2,758.00
$2,765.00
$2,772.00
$2,779.00
$2,786.00
$2,793.00
$2,800.00
$2,807.00
$2,814.00
$2,821.00
$2,828.00
$2,835.00
$2,842.00
$2,849.00
$2,856.00
$2,863.00
$2,870.00
$2,877.00
$2,884.00
$2,891.00
$2,898.00
$2,905.00
$2,912.00
$2,919.00
$2,926.00
$2,933.00
$2,940.00
$2,947.00
$2,954.00
$2,961.00
$2,968.00
$2,975.00
$2,982.00
$2,989.00
$2,996.00
$3,003.00
$3,010.00
$3,017.00
$3,024.00
$3,031.00
$3,038.00
$3,045.00
$3,052.00
$3,059.00
$3,066.00
$3,073.00
$3,080.00
$3,087.00
$3,094.00
$3,101.00
$3,108.00
$3,115.00

F
$2,282.25
$2,287.50
$2,292.75
$2,298.00
$2,303.25
$2,308.50
$2,313.75
$2,319.00
$2,324.25
$2,329.50
$2,334.75
$2,340.00
$2,345.25
$2,350.50
$2,355.75
$2,361.00
$2,366.25
$2,371.50
$2,376.75
$2,382.00
$2,387.25
$2,392.50
$2,397.75
$2,403.00
$2,408.25
$2,413.50
$2,418.75
$2,424.00
$2,429.25
$2,434.50
$2,439.75
$2,445.00
$2,450.25
$2,455.50
$2,460.75
$2,466.00
$2,471.25
$2,476.50
$2,481.75
$2,487.00
$2,492.25
$2,497.50
$2,502.75
$2,508.00
$2,513.25
$2,518.50
$2,523.75
$2,529.00
$2,534.25
$2,539.50
$2,544.75
$2,550.00
$2,555.25
$2,560.50
$2,565.75
$2,571.00
$2,576.25

A
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570

C
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502

D
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$3,122.00
$3,129.00
$3,136.00
$3,143.00
$3,150.00
$3,157.00
$3,164.00
$3,171.00
$3,178.00
$3,185.00
$3,192.00
$3,199.00
$3,206.00
$3,213.00
$3,220.00
$3,227.00
$3,234.00
$3,241.00
$3,248.00
$3,255.00
$3,262.00
$3,269.00
$3,276.00
$3,283.00
$3,290.00
$3,297.00
$3,304.00
$3,311.00
$3,318.00
$3,325.00
$3,332.00
$3,339.00
$3,346.00
$3,353.00
$3,360.00
$3,367.00
$3,374.00
$3,381.00
$3,388.00
$3,395.00
$3,402.00
$3,409.00
$3,416.00
$3,423.00
$3,430.00
$3,437.00
$3,444.00
$3,451.00
$3,458.00
$3,465.00
$3,472.00
$3,479.00
$3,486.00
$3,493.00
$3,500.00
$3,507.00
$3,514.00

F
$2,581.50
$2,586.75
$2,592.00
$2,597.25
$2,602.50
$2,607.75
$2,613.00
$2,618.25
$2,623.50
$2,628.75
$2,634.00
$2,639.25
$2,644.50
$2,649.75
$2,655.00
$2,660.25
$2,665.50
$2,670.75
$2,676.00
$2,681.25
$2,686.50
$2,691.75
$2,697.00
$2,702.25
$2,707.50
$2,712.75
$2,718.00
$2,723.25
$2,728.50
$2,733.75
$2,739.00
$2,744.25
$2,749.50
$2,754.75
$2,760.00
$2,765.25
$2,770.50
$2,775.75
$2,781.00
$2,786.25
$2,791.50
$2,796.75
$2,802.00
$2,807.25
$2,812.50
$2,817.75
$2,823.00
$2,828.25
$2,833.50
$2,838.75
$2,844.00
$2,849.25
$2,854.50
$2,859.75
$2,865.00
$2,870.25
$2,875.50

A
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627

C
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559

D
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$3,521.00
$3,528.00
$3,535.00
$3,542.00
$3,549.00
$3,556.00
$3,563.00
$3,570.00
$3,577.00
$3,584.00
$3,591.00
$3,598.00
$3,605.00
$3,612.00
$3,619.00
$3,626.00
$3,633.00
$3,640.00
$3,647.00
$3,654.00
$3,661.00
$3,668.00
$3,675.00
$3,682.00
$3,689.00
$3,696.00
$3,703.00
$3,710.00
$3,717.00
$3,724.00
$3,731.00
$3,738.00
$3,745.00
$3,752.00
$3,759.00
$3,766.00
$3,773.00
$3,780.00
$3,787.00
$3,794.00
$3,801.00
$3,808.00
$3,815.00
$3,822.00
$3,829.00
$3,836.00
$3,843.00
$3,850.00
$3,857.00
$3,864.00
$3,871.00
$3,878.00
$3,885.00
$3,892.00
$3,899.00
$3,906.00
$3,913.00

F
$2,880.75
$2,886.00
$2,891.25
$2,896.50
$2,901.75
$2,907.00
$2,912.25
$2,917.50
$2,922.75
$2,928.00
$2,933.25
$2,938.50
$2,943.75
$2,949.00
$2,954.25
$2,959.50
$2,964.75
$2,970.00
$2,975.25
$2,980.50
$2,985.75
$2,991.00
$2,996.25
$3,001.50
$3,006.75
$3,012.00
$3,017.25
$3,022.50
$3,027.75
$3,033.00
$3,038.25
$3,043.50
$3,048.75
$3,054.00
$3,059.25
$3,064.50
$3,069.75
$3,075.00
$3,080.25
$3,085.50
$3,090.75
$3,096.00
$3,101.25
$3,106.50
$3,111.75
$3,117.00
$3,122.25
$3,127.50
$3,132.75
$3,138.00
$3,143.25
$3,148.50
$3,153.75
$3,159.00
$3,164.25
$3,169.50
$3,174.75

A
628
629
630
631
632
633
634
635
636
637
638
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
668

C
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600

D
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

E
$3,920.00
$3,927.00
$3,934.00
$3,941.00
$3,948.00
$3,955.00
$3,962.00
$3,969.00
$3,976.00
$3,983.00
$3,990.00
$3,997.00
$4,004.00
$4,011.00
$4,018.00
$4,025.00
$4,032.00
$4,039.00
$4,046.00
$4,053.00
$4,060.00
$4,067.00
$4,074.00
$4,081.00
$4,088.00
$4,095.00
$4,102.00
$4,109.00
$4,116.00
$4,123.00
$4,130.00
$4,137.00
$4,144.00
$4,151.00
$4,158.00
$4,165.00
$4,172.00
$4,179.00
$4,186.00
$4,193.00
$4,200.00

F
$3,180.00
$3,185.25
$3,190.50
$3,195.75
$3,201.00
$3,206.25
$3,211.50
$3,216.75
$3,222.00
$3,227.25
$3,232.50
$3,237.75
$3,243.00
$3,248.25
$3,253.50
$3,258.75
$3,264.00
$3,269.25
$3,274.50
$3,279.75
$3,285.00
$3,290.25
$3,295.50
$3,300.75
$3,306.00
$3,311.25
$3,316.50
$3,321.75
$3,327.00
$3,332.25
$3,337.50
$3,342.75
$3,348.00
$3,353.25
$3,358.50
$3,363.75
$3,369.00
$3,374.25
$3,379.50
$3,384.75
$3,390.00

A
1 PROBLEM 1.26
2
3
4
5
6
7
8
9
10
a
11
12
13
b
14
15
16
17
c
18
19
d
20
21
22

PRODUCTION CAPACITY =
PERCENT OF CAPACITY NOW=
IF PERCENT OF CAPACITY=
SELLING PRICE/PALLET=
VARIABLE COST/PALLET=
FIXED COST=

300,000
70.00%
90.00%
$18.25
$15.75
$550,000.00

ANNUAL PROFIT=

-$25,000.00 (OR LOSS OF $25,000.00)

=300000*70%*(18.25-15.75)-550000

LET X=
ANNUAL PROFIT=
X=BREAKEVEN SALES VOLUME

BREAKEVEN SALES VOLUME

$0.00 =X*(18.75-15.25)-550000
220,000 =550000/(18.25-15.75)

ANNUAL PROFIT AT 90% CAP=

$125,000.00 =300000*90%*(18.25-15.75)-550000

LET Y=
% REDUCTION IN FIXED COSTS=
ANNUAL PROFIT=
Y=BREAKEVEN SALES VOLUME=

BREAKEVEN SALES VOLUME

40%
$0.00 =Y*(18.25-15.75)-550000*(1-40%)
132,000 =550000*(1-40%)/(18.25-15.75)

A
B
C
D
E
F
G
H
1 PROBLEM 1.27
2
3
SEQUENCE 1
W1
W2
W3
W4
W5
4
SCRAP RATE
3.00%
5.00%
5.00% 4.00% 4.00%
5
6
SEQUENCE 2
WA
WB
WC
7
SCRAP RATE
5.00%
3.00%
3.00%
8
9
LOT SIZE=
1,000
10
RAW MAT'L COST=
$30.00
11
SEQUENCING COST A=
$180.00 PER UNIT
12
SEQUENCING COST B=
$210.00 PER UNIT
13
14
PERCENT GOOD FROM SEQ 1=
80.6792% =(1-0.03)*(1-0.05)*(1-0.05)*(1-0.04)*(1-0.04)
15
PERCENT GOOD FROM SEQ 2=
89.3855% =(1-0.05)*(1-0.03)*(1-0.03)
16
17
18
SEQUENCE A TC=
$210,000.00 =1000*(30+180)
19
SEQUENCE A TC/GOOD UNIT=
$260.29 =210000/(1000*80.6792%)
20
21
SEQUENCE B TC=
$240,000.00 =1000*(30+210)
22
SEQUENCE B TC/GOOD UNIT=
$268.50 =240000/(1000*89.3855%)
23
24
25
SEQUENCE A HAS A LOWER TC/GOOD UNIT
26
27
SIDE NOTE! THESE SCRAP RATES ARE TERRIBLE.
28
THIS COMPANY WILL NOT BE COMPETITIVE

A
1 PROBLEM 1.28
2
3
a
4
5
6
7
8
9
10
11
12
13
14
15
b
16

FC/MONTH
MPG
MAINT COST PER MI
MILES/MONTH=
COST OF FUEL/GAL=
COST/MONTH=
CALC FOR CAR A=
AVG COST/MILE=
CALC FOR CAR C=

CAR A
$550
25
$0.20

CAR B
$400
19
$0.25

CAR C
$800
33
$0.15

4,000
$3.25
$1,870.00 $2,084.21 $1,793.94
=550+(4000/25)*3.25+4000*0.2
$0.47

$0.52

$0.45
=1793.94/4000

A
B
1 PROBLEM 1.29
2
3
4
5
6
TAYLOR'S TOOL LIFE EXPONENT =

n
tc

TUNGSTEN COATED
CARBIDE CARBIDE CERAMIC
INSERT
INSERT INSERT
0.22
0.27
0.38
2
2
2

TOOL CHANGE TIME, MINUTES =

COST $/CUTTING EDGE =

cc

$0.40

$1.80

$3.00

COST OF LABOR AND OH $/MIN =

CONSTANT =

co

$1.00

$1.00

$1.00

150

250

550

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

MIN UNIT COST TOTAL TOOL LIFE = Tc=

8.509
10.274
8.158
CALCULATION 1 =(2+0.4/1)*((1/0.22)-1)
CALCULATION 2
=(2+1.8/1)*((1/0.27)-1)
CALCULATION 3
=(2+3/1)*((1/0.38)-1)

CUTTING SPEED =
CALCULATION 1
CALCULATION 2
CALCULATION 3
b

93.652
133.281
247.721
V=
=150/(8.509^0.22)
=250/(10.274^0.27)
=550/(8.158^0.38)

BASED ON V, THE CERAMIC INSERT IS PREFERRED AT 247.721 FEET/MINUTE

A
B
C
D
1 PROBLEM 1.30
2
3
4
MACHINE A
MACHINE B
5
TOTAL SETUP TIME IN HOURS =
4
6
6
CALCULATION
=8*0.75
7
MACHINING TIME PER UNIT =
0.50
0.55
8
HOURLY WAGE RATES =
$20.00
$18.00
9
HOURLY OVERHEAD RATES =
$30.00
$27.00
10
11
a
ORDER SIZE =
100
12
COST OF ORDER SIZE =
$2,700.00
$2,745.00
13
CALCULATIONS =4*(20+30)+100*0.5*(20+30) =6*(18+27)+100*0.55*(18+27)
14
15
b
ORDER SIZE =
500
16
COST OF ORDER SIZE =
$12,700.00
$12,645.00
17
CALCULATIONS =4*(20+30)+500*0.50*(20+30) =6*(18+27)+500*0.55*(18+27)
18
19
c
LET X= BREAKEVEN ORDER QUANTITY
20
21
EQUATE THE COSTS OF MACHINES A AND B
22
4*(20+30)+X*0.5*(20+30)=6*(18+27)+X*0.55*(18+27)
23
24
SOLVE FOR X
25
X*(0.5*(20+30)-0.55*(18+27))=6*(18+27)-4*(20+30)
26
0.25*X=
70
27
X=
280