Questions
Case study 6.2: Converting to LPG – is it worth it. Green fuel runs out of...

Case study 6.2: Converting to LPG – is it worth it.
Green fuel runs out of gas5
The cost of converting a car to run on liquefied petroleum gas (LPG) is about £1,500 in the UK, towards which a government grant would contribute about £700. From September 1 2004, LPG will on average cost 40.7p per litre, compared with 79.1p for ordinary unleaded petrol. However, LPG cars usually have slightly worse fuel consumption, losing about 13% in terms of miles per gallon.
Questions
Fast-Trak company owns a fleet of 20 cars, which are bought new and are used for 30,000 miles over two years before being sold off. The cars average 30 miles
to the gallon (imperial) on petrol. The conversion to LPG does not affect the price in the secondhand market.
1 Calculate the profit contribution per hundred miles of LPG compared with unleaded petrol, for one of Fast-Trak’s cars.
2 Calculate the break-even mileage for the cars with the LPG conversion.
3 Calculate the effect on the profit of Fast-Trak of converting to LPG.
4 The government wants to encourage the use of LPG to protect the environment by reducing the break-even mileage to 10,000 miles; how large a grant should it offer for the LPG conversion?

In: Economics

A sailboat runs before the wind with a constant speed of 3.5 m/s in a direction...

A sailboat runs before the wind with a constant speed of 3.5 m/s in a direction 28 ∘ north of west. You may want to review (Pages 89 - 92) .

How far west has the sailboat traveled in 22 min?

How far north has the sailboat traveled in 22 min?

In: Physics

The Nile River runs from east to west. Assume the water in the Nile is electrically...

The Nile River runs from east to west. Assume the water in the Nile is electrically neutral while still conducting, and that the ions (both positive and negative in equal concentration) are carried with the flow of the water. What would the electric potential of the north side of the river be in comparision to the southern side due to the lorentz force on the ions. Remember that the magnetic field of the earth has northern and southern components.

In: Physics

Karen runs a print shop that makes posters for large companies. It is a very competitive...

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $2,000 for the first thousand posters, $1,600 for the second thousand, and then $1,000 for each additional thousand posters. Instructions: Round your answers to 3 decimal places.

a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters?

2,000?

10,000?

b. What is her ATC per poster if she prints 1,000?

2,000?

10,000?

c. If the market price fell to 95 cents per poster, would there be any output level at which Karen would not shut down production immediately? (Yes/ No)

In: Economics

A subway has good service 70% of the time and runs less frequently 30% of the...

A subway has good service 70% of the time and runs less frequently 30% of the time because of signal problems. When there are signal problems, the amount of time in minutes that you have to wait at the platform is described by the pdf probability density function with signal problems = pT|SP(t) = .1e −.1t But when there is good service, the amount of time you have to wait at the platform is probability density function with good service = pT|Good(t) = .3e −.3t You arrive at the subway platform and you do not know if the train has signal problems or is running with good service, so there is a 30% chance the train is having signal problems. (a) What is the probability that you wait at least 1 minute if there is good service? (b) What is the probability that you wait at least 1 minute if there are signal problems? (c) After 1 minute of waiting on the platform, you decide to re-calculate the probability that there are signal problems conditioning on the fact that your wait will be at least 1 minute long (since you have already waited 1 minute). What is that new probability? (d) After 5 minutes of waiting, still no train. You re-calculate again. What is the new probability?

In: Statistics and Probability

Carlos lives in Philadelphia and runs a business that sells pianos. In an average year, he...

Carlos lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Carlos does not operate this piano business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this piano business.

Implicit Cost Explicit Cost
The salary Carlos could earn if he worked as an accountant
The wholesale cost for the pianos that Carlos pays the manufacturer
The rental income Carlos could receive if he chose to rent out his showroom
The wages and utility bills that Carlos pays

Complete the following table by determining Carlos’s accounting and economic profit of his piano business.

Profit (Dollars)
Accounting Profit
Economic Profit

In: Economics

Karen runs a print shop that makes posters for large companies. It is a very competitive...

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,800 for the first thousand posters, $1,500 for the second thousand, and then $900 for each additional thousand posters.

Instructions: Round your answers to 3 decimal places.

a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters?

     What if she prints 2,000 posters?

     What if she prints 10,000 posters?

b. What is her ATC per poster if she prints 1,000?

     What if she prints 2,000?

     What if she prints 10,000?

  c. If the market price fell to 85 cents per poster, would there be any output level at which Karen would not shut down production immediately? Yes or No
  

In: Economics

Gayle runs at a speed of 4.17 m/s and dives on a sled, which is initially...

Gayle runs at a speed of 4.17 m/s and dives on a sled, which is initially at rest on the top of a frictionless snow-covered hill. After she has descended a vertical distance of 4.52 m, her brother, who is initially at rest, hops on her back and together they continue down the hill. What is their speed at the bottom of the hill if the total vertical drop is 17.3 m? Gayle's mass is 52.8 kg, the sled has a mass of 5.45 kg and her brother has a mass of 33.1 kg.

In: Physics

The probability a cat runs into another room for no reason is 73%. When Miss Cat...

The probability a cat runs into another room for no reason is 73%. When Miss Cat sees her toy there is an 83% chance she will run to it and a 17% she will run into another room.

Given that Miss Cat has run into the other room what is the probability she saw her toy?

In: Statistics and Probability

Gayle runs at a speed of 3.30 m/s and dives on a sled, initially at rest...

Gayle runs at a speed of 3.30 m/s and dives on a sled, initially at rest on the top of a frictionless snow-covered hill. After she has descended a vertical distance of 5.00 m, her brother, who is initially at rest, hops on her back and together they continue down the hill. What is their speed at the bottom of the hill if the total vertical drop is 15.0 m? Gayle's mass is 47.0 kg, the sled has a mass of 5.25 kg and her brother has a mass of 30.0 kg.

In: Physics