Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Homework #1

    Uploaded by

    Mutaz M Banat
    The document provides information about a construction company planning projects for 2023. It includes details about 8 buildings constructed in 2018 including their areas and costs. It also provides materials cost indices from 2017-2023. The company began constructing larger 3,000 m2 units in 2019, with labor hours to complete the first unit being 24,000 hours, decreasing exponentially until the 15th unit. Given labor wage of $20/hour in 2023 and $2.3M in annual overhead, the document asks to calculate the breakeven selling price per unit and selling price to earn a 10% profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Homework #1

    Uploaded by

    Mutaz M Banat
    7 views2 pages
    The document provides information about a construction company planning projects for 2023. It includes details about 8 buildings constructed in 2018 including their areas and costs. It also provides materials cost indices from 2017-2023. The company began constructing larger 3,000 m2 units in 2019, with labor hours to complete the first unit being 24,000 hours, decreasing exponentially until the 15th unit. Given labor wage of $20/hour in 2023 and $2.3M in annual overhead, the document asks to calculate the breakeven selling price per unit and selling price to earn a 10% profit.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides information about a construction company planning projects for 2023. It includes details about 8 buildings constructed in 2018 including their areas and costs. It also provides materials cost indices from 2017-2023. The company began constructing larger 3,000 m2 units in 2019, with labor hours to complete the first unit being 24,000 hours, decreasing exponentially until the 15th unit. Given labor wage of $20/hour in 2023 and $2.3M in annual overhead, the document asks to calculate the breakeven selling price per unit and selling price to earn a 10% profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views2 pages

    Homework #1

    Uploaded by

    Mutaz M Banat
    The document provides information about a construction company planning projects for 2023. It includes details about 8 buildings constructed in 2018 including their areas and costs. It also provides materials cost indices from 2017-2023. The company began constructing larger 3,000 m2 units in 2019, with labor hours to complete the first unit being 24,000 hours, decreasing exponentially until the 15th unit. Given labor wage of $20/hour in 2023 and $2.3M in annual overhead, the document asks to calculate the breakeven selling price per unit and selling price to earn a 10% profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    The University of Jordan

    School of Engineering
    Civil Engineering Department
    CE 0901420 Engineering Economy Fall, 2022 – 2023
    Take-home Exam Due Date: Sunday, Nov 13th, 2022 at 5:00 pm
    Name: Student Number:

    Instructions
    - This assignment is to be completed individually (no groups). Any signs of
    cheating will result in a zero score for this assignment and may result in an F
    grade in the class.
    - Use this Microsoft Word File by typing any necessary equations, formulas,
    or text onto the same file, and make sure that your work is well-organized and
    presented neatly. Messy work will not receive the full mark even if the math
    is correct.
    - Print your name/student ID number and submit this M.S. Word file on
    eLearning.
    - Scanned copies will not be accepted.
    - The deadline is at 5:00 pm on Sunday, Nov 13th, 2022. Late submissions
    will receive a zero score.

    Problem statement
    A construction company is planning their projects for the year 2023. The company
    is considering the construction of 20 buildings, each is 3,000 m2. In 2018, they have
    built 8 similar buildings but with smaller areas, and the material costs associated
    with those 8 buildings are shown in the following table:
    Building # Area (m2) Cost ($)
    1 1,430 350,350
    2 1,475 358,326
    3 1,655 385,922
    4 1,790 399,387
    5 1,961 419,004
    6 2,015 427,696
    7 2,375 456,126
    8 2,533 461,765
    The materials cost index values are as shown in the following table:
    Year Cost index
    2017 321
    2018 332
    2019 348
    2020 368
    2021 379
    2022 398
    2023 406

    In 2019, the company began constructing larger units (3,000 m2 units compared to
    those in 2018 as shown in the first table). The labor hours required to complete the
    first 3,000 m2 unit was 24,000 hours but the labor hours decreased exponentially
    with time due to the experience gained by workers at a 90% learning slope until
    reaching the 15th unit, after which a steady-state was reached. Assume the 2023
    average labor wage is $20 per hour and the Company’s fixed annual cost (overhead)
    is $2,300,000.
    (a) What is the breakeven selling price per unit?
    (b) What is the selling price per unit assuming the company wishes to earn 10%
    profit on top of the total costs incurred?

    You might also like