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Semiconductor manufacturing involves taking a flat disc of silicon, called a wafer, and depositing many layers of material on top of it. Each layer has a pattern on it that, upon completion, defines the electrical circuits of the finished microprocessor. Each 8- inch wafer has up to 100 microprocessors on it. However, the typical average yield of production line is 75% good microprocessor per wafer. At one local company, the process engineers responsible for the chemical vapordisposition (CVD) tool (i.e., process equipment) that deposits one of the many layers have an idea for improving overall yield. They propose to improve this tool’s vacuum with redesigning of one of its major components. The engineers believe the project will result in a 2% increase in the average production yield of nondirective microprocessors per wafer. This company has only one CVD tools, and it can process 10 wafers per hour. The process engineers have determined that CVD tool has an average utilization rate (i.e., “time running”) of 80%. A wafer costs $5,000 to manufacture, and o good microprocessor can be sold for $100. These semiconductor fabrication plants (“fabs”) operate 168 hours per week, and all good microprocessors produced can be sold. The capital investment required for the project is $250,000, and maintenance and support expenses are expected to be $25,000 per month. The lifetime of the modified tool will be five years, and the company uses 12% MARR per year (compounded monthly). Before implementation the proposed engineering solution, top management has posed the following questions to you (hired as an independent consultant) to evaluate the merits of the proposal: (a) Based on the PW method, should the project be approved? (b) If the achievable improvement in production yield has been overestimated by the process engineers, at what percent yield improvement would the project breakeven?
Explain which industries have substantially reduced fixed cost commitments. Reduction in costs has substantially impaired the ability.
Suppose that there are two products: soda along with clothing. Both Brazil and the United States produce each product.
q.let the inverse demand curve be d q 56 - 2q q q1 q2. costs for each firm are a constant variable cost of 2 a unit
q.on november 1 2012 james deanne moved from saskatchewan to nova scotia. he traveled 2300 km by car for 4 days in
assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze, since each additional cow has less grass to eat than the previous one.
Illustrate what would be a reasonable breakdown between private sector vs. public sector spending for an increment of $1. Are we talking $0.8 from private and $0.2 from public or would you suggest a bigger swing either way.
How versus simply ordering each farm to reduce pesticide use to 40% of current levels under threat of heavy fines for non-compliance.
Explain how can changes in macro environment affect industries through the microeconomics factors of demand, production, cost and profitability.
The cost of repairing the valve now is $10,000; and of replacing it is $20,000. If the criterion is to minimize expected costs, which alternative is best?
q.a competitive firm sells its product at a cost of 0.10 per unit. its total cost function istc 5 - 0.5q 0.001q2a
the european engine company eec is a multi-national manufacturer of small gasoline and diesel motors. eec has predicted
Suppose the demand for Coca-Cola increases due to a change in consumer tastes. Ceteris paribus, the equilibrium price should _______ and the equilibrium quantity should _______.
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