economy engineering

8/12/2019 economy engineering

1/70

!" $%&' $%()*+'&

1

Hatem Elayat

Mechanical Engineering Department AUC

ENGR 345


2/70

,-'./(*

$%&' )0'*1%2/*& 3/4*5 0(5 602/07.* )%&'& 82*09 *6*( +%/(' :2/)* ; 5*/(/


3/70

$%&' $0'*1%2/*&

B/C* $D).* $%&'& :0&' 0(5 E-(9 $%&'& 3-'-2* 0(5 ,++%2'-(/'D $%&'& F/2*)'G H(5/2*)'G 0(5 ,6*2I*05 $%&'& 3/4*5 0(5 J02/07.* $%&'& =6*201* 0(5 >021/(0. $%&'&

3


4/70

B/C* $D).* $%&'& KB$$L

$%&'& 0&&%)/0'*5 M/'I 'I* /'*< 5-2/(1 /'& *(@2*&*26/)* ./C*

H().-5*&N 5*&/1(G 5*6*.%+G 0(5 5/&+%&0.

B$$ O 0)P-/&/@%( Q,; > Q 5/&+%&0. 3%2 :2%R*)'&N B$$

! 3/2&' $%&' K/(/@0. /(6*&'


5/70

B/C* $D).* $%&'& KB$$L

3/2&' $%&' S H(/@0. H(6*&'


6/70


7/70

B/C* $D).* $%&'& KB$$LF/&+%&0. $%&'& KF$L

WI*( ./C* %C /'*< *(5& B07%2 ; >0'*2/0. )%&'& C%2 2*


8/70

:0&' 0(5 E-(9 $%&'&

]/&'%2/)0. )%&'& 'I0' %))-22*5 /( 'I* +0&' E-(9N +0&' 'I0' 02* -(2*)%6*207.* ]0& (% 2*.*60()* '% C-'-2* )%&'& 0(5 7*(*^'&

" [40


9/70

3-'-2* 0(5 ,++%2'-(/'D $%&'&

3-'-2* )%&'& , ; > G B07%2G >0'*2/0.&G %6*2I0-.G 5/&+%&0. E0


10/70

F/2*)'G H(5/2*)' 0(5 ,6*2I*05 $%&'&

F/2*)' )%&'& T*.0'*5 '% 0 +02@)-.02 %-'+-' [40


11/70

Direct Material

Direct Labor

11

Cost Structure of Manufacturing


12/70

Direct Material

Direct Labor

Indirect Material

Indirect Labor

Fixed & Miscellaneous

12



13/70

Direct Material

Direct Labor

Indirect Material

Indirect Labor


General & Administrative

Selling

Profit

13



14/70

Direct Material

Direct Labor

Indirect Material

Indirect Labor



Selling

Profit

14

SellingPrice

C

ostof

G

oods

Prime + Factory Overhead = Cost of Goods Manufactured



15/70

Direct Material

Direct Labor

Indirect Material

Indirect Labor



Selling

Profit

15

SellingPrice

CostofGoods



16/70

3/4*5 0(5 J02/07.* $%&'&

\$ K4L O 3$ Q J$ K4L

\$ K4L O \%'0. $%&'

3$ O 3/4*5 $%&'

J$ K4L O J02/07.* $%&'

3/4*5 )%&'& T*


17/70

3/4*5 0(5 J02/07.* $%&'&

17

400

300

200

100

5 10 15 20

Fixed Cost

Total Annual Cost

(20, 300)

Dollars

(InThousand

s)

Units, Q (In Thousands)

Given: c=$10/unit F= $100,000


18/70

82*09S[6*( :%/('

82*09S*6*( +%/('N \%'0. T*6*(-* O \%'0. $%&'

18

Profit

QCostand

Revenue(

LE)

Fixed Cost

Total Cost

Total Revenue

B-E point


19/70

\%'0. T*6*(-* ; \%'0. $%&'

19

Break-even

Quantity

400

300

200

100

5 10 15 20

Loss Fixed Cost

Total Annual

Revenues

Total Annual

Cost

Profit

(20, 300)

(20, 400)

Dollars(InThousands)

Units, Q (In Thousands)

Given: p= $ 20/unit c=$10/unit F= $100,000

0


20/70

[4004/


21/70

[40


22/70

82*09S[6*( =(0.D&/&

22

Patients (Q)

500 1000 1500 2000

Fixedcosts

Break-even quantity

Total annual costs

(2000, 300)

Loss

0

400

300

200

100

Total annual revenues

Profits

(2000, 400)

D

ollars(in

tho

usands)

Given: F= $ 10,000 p= $30/patient c= $20/patient


23/70

[40


24/70

[40


25/70

[40


26/70

[40$'=-D-=.?@)$A /G=$2 H2 I&@&*>&'FG=$2 H2 J='$'=-

D-=.?@)$A / KD 2 LM F GJ

G%&-=-&5667 D-=.?@)$A / 1234 N 14:444F94:444/52945669 D-=.?@)$A / 7214 N 74:444FO4:444/5261'=222D-=.?@)$A )P,-=@&< )* 5669 =@&- 56672

26


27/70

[40


28/70

8[=N >09* %2 8-D F*)/&/%(&

5*%.1 !""2.1 [*


29/70

>09*S8-D F*)/&/%(&N [40


30/70

8[=N E*.*)@%( =


31/70

8[=N E*.*)@%( =*2 1&.


32/70

8[=N E*.*)@%( =


33/70

:2/)* 0(5 F*


34/70

34


35/70

[40


36/70

[40


37/70

>021/(0. $%&'

37

For a total cost function that is continuous in the outputvariable x, marginal cost is defined as the derivative of theTotal cost function with respect to xMarginal Cost = dTC(x)/dx

True for continuous functions that are linearor nonlinearin theOutput variable xExample:For TC(x) = $950 + $0.15x, thenMarginal Cost = dTC(x)/dx = $0.15In this case the marginal cost is a constant

If the total cost function is discontinuous and defined only fordiscrete values of x (x = 1, 2, 3,) then difference equationsmust be used


38/70

[40


39/70

[40


40/70

[40


41/70

[40


42/70

T*6/*M :2%7.*< E*' e

42


43/70

$%


44/70

$%&' [&@%&' 5/d)-.'G @


45/70

$%&' [&@


46/70

$%&' [&@


47/70

$%&' [&@%2* 5/d)-.' '% *&@


48/70

$%&' [&@0/('*(0()* V :*2&%((*." H('*2(0. E%-2)*N 0))%-(@(1 &D&'*0'*2/0. _ KF>_LN &'*+ *&@_Ls caa h

# *&@


70/70

[)%(%

economy engineering

Documents