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Micro surfacing is part of a pavement restoration and maintenance program that seals the surface of a street that has minor cracking to prevent water from penetrating into the base material. The annual cost of the equipment (truck, tank, valves, etc.) is $97,000 per year and the material cost is $2.64 per square yard. Alternatively, regular street resurfacing requires equipment that has a first cost of $202,000 with a 11-year life and no salvage value. The variable cost for regular resurfacing is $15.16 per square yard. At an interest rate of 6% per year,
(a) What is the annual fixed cost of the second alternative?
$
(b) How many square yards per year must be resurfaced for the two methods to break even?
______ sq. yds.
(c) What is the breakeven cost?
Lane is responsible for reviewing the standard costs. While revieweing the standard for the coming year, two ethical issues arise.
Describe the budget constraint which she faces when deciding how many drinks to buy.
q.which of the government policies below is not likely to encourage per capita economic growth?in the latter end of
The FOMC wants to expand the money supply by $120 million and decides to buy bonds on the open market. Suppose the reserve requirement is 40% and banks do not hold any excess reserves. Which of the following is an alternative monetary policy that the..
The Acme bag company manufactures and sells bags using paper and labor. Currently workers are paid $6 per hour and paper costs $20 per ton. Acme’s current total costs of production are $200,000 per day. Write an equation for, and illustrate on a gra..
Why do you think the compensation plan differ at the two firms. In particular why do you think Kaufmann s pays commission to salespeople, while Parkleigh does not.
q1. suppose that for a particular economy and period investment was equal to 200 government expenditure was equal to
During the average month in 2006 she was logged onto the Web for 17 hours. Illustrate what is the average cost of an hour of Web time to Kety. What is the marginal cost of an additional hour.
elling price of another product Y in dollars per unit. The inverse delivery curve. Conclude whether X also Y are substitutes or complements.
Restaurants have observed that large parties (eight or more) leave a lower average tip than smaller parties. Identify the effect, which also makes it more difficult to reach global environmental agreements, responsible for this phenomenon.
the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.
Austerity measures implemented in several European countries will mean lower level of government expenditures for these countries? For these countries, this would cause
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