End of Chapter 7 Exercises: 7-7 and 7-8

End of Chapter 7 Exercises: 7-7 and 7-8

Homework Assignment:
End of Chapter 6 Exercises: 6-9
End of Chapter 7 Exercises: 7-7 and 7-8
End of Chapter 8 Exercises: 8-1 and 8-15

End of Chapter 6 Exercises: 6-9
6–9 Consider the financial aspects of the digital thermometer project. The project cost is estimated at $10,000. The total manufacturing cost of the digital thermometer, as called for in the specifications, total $150 (that is, $95 parts plus $40 labor plus $15 overhead). In order to sell each digital thermometer, consider an additional cost of $50 to cover the company’s administrative overhead and selling expenses. The net selling price of each digital thermometer will be $250. Determine the following using general problem-solving skills without considering the changing value of money due to inflation:
a. What is the net profit for each digital thermometer sold?
net profit = price – costs = $250 - $150 - $50 = $50
b. If the net profit is used to pay off the project development costs, how many digital thermometers will have to be sold to recover the $10,000 investment?
$10,000 investment
$50 profit cost
Investment / Profit Cost = Thermometers Sold
$10,000 / $50 = 200 Items Sold
c. At the projected annual volume of 1000 units per year for the product, roughly how long will it take until the $10,000 is recovered? This is the break-even point for the company.
If it is 1000 units per year
200 unites is 1/5 of 1000, so it will take 1/5 of a year or 2.4 months

End of Chapter 7 Exercises: 7-7 and 7-8
7–7 Develop the top-level schedule for the construction of a new home using a Gantt chart format on a computer spreadsheet program. Include the major tasks listed below in an order that you think is appropriate and schedule tasks in parallel wherever possible.

Site excavation
Cellar walls and floor
Framing, including application of exterior plywood
Windows and doors
Heating/air conditioning
Interior walls
Interior floors...

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