Engineering Economy 16th Edition Sullivan Test Bank
Engineering Economy 16th Edition Sullivan Test Bank
Engineering Economy 16th Edition Sullivan Test Bank
https://testbankfan.com/download/engineering-economy-16th-edition-sullivan-test-ban
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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
At 118 units per hour, net increase in value per day = $11,922.81
Select the machine speed that provides the higher net increase in value per daymachine speed B.
2) You are deciding between three types of water heaters. The associated costs are shown below. The annual cost
of operation for gas and oil heaters is estimated by 365 x 41045/EF x Fuel Cost per Btu, and the annual cost of
operation for electric water heaters is estimated by 365 x 12.03/EF x Electricity Cost per kWh. The selected
heater will be used for only one year and then sold at the market value. Which alternative should be selected?
Select the heater that provides the least annual coststhe gas heater.
3) A garment manufacturing company makes 380,000 articles per year. Each article takes 95 minutes of direct
labor at the rate of $9.00 per hour. The overhead costs are $7.50 per direct labor hour. The average price of the
finished product is $80 per article. A new machine will reduce the direct labor hour by 15 minutes per article.
What is the maximum amount the company should pay for the new machine if it wants to break even by the
end of the first year?
Answer: $1,567,500.00
4) A local cable company has a fixed cost of $7400 per month and variable costs of $50 per month per subscriber.
If the company charges on average $110 per month to its customers, find the breakeven point in terms of
subscribers per month for the company.
Answer: 123.33 subscribers per month
5) A company estimates its annual expenses, Y, in dollars from Y = 0.235X2 + 7X + 4 and annual revenue in dollars
from 0.215X2 + 15X, where X is annual units sold. Find the value of X that gives maximum profit.
Answer: 200 units
7) The annual fixed cost for a light fixture manufacturing company are $38,000, and the variable costs are $40 per
unit. If the selling price per unit is p = 485 - 1.395X, what is the optimum demand for a light fixture?
Answer: 159.50 units per year
8) An accounting and management consulting firm charge-out rate is $112 per hour. The maximum output is
214,000 hours per year. The fixed cost is $610,000 per year and the variable cost is $62 per standard service
hour. What is the breakeven point in percentage of total capacity?
Answer: 5.70% of capacity
9) A headhunter company has fixed costs of $57,000 per month and variable costs of $1000 per customer account.
The company currently charges $1150 per month for each account and has 38,000 accounts. It wants to raise the
monthly fee to $1160.55 to cover enhanced features such as a new web interface and a newly acquired database,
which increases the variable cost by 9 percent. What is the new breakeven point in number of accounts?
Answer: 807.94 accounts
10) The cost for operating a commercial truck is knv1/2, where k is a constant of proportionally, v is velocity in
miles per hours, and n is the trip length in miles. It is estimated that at 85 mph, the average cost of operation is
$52 per mile. The truck owner wants to minimize the cost of operation, which needs to balance against the cost
of delays and unscheduled maintenance, which is assumed to be $10 per hour. What is the optimum velocity
needed to minimize the total costs?
Answer: The truck should be operated at an average velocity of 2.33 mph to minimize the total cost of operation
and delays.
11) A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and
$65 in materials. To break even, 21,000 units must be sold. What is the price of the product?
Answer: $102.48
12) A manufacturing plant is planning to replace outdated equipment with more energy-efficient and
environmental-friendly equipment. Two models are under consideration. Model A is sold for $159,000 and can
produce at an optimum speed of 78 unit/hour. Model B is sold for the same price, but can produce at an
optimum speed of 76 unit/hour. Model A requires 6 hours of maintenance for every 4300 units produced, while
Model B requires 5 hours of maintenance for every 3300 units. The maintenance cost for both models is $100 per
hour. The variable operating cost is $340 per hour for Model A and $290 per hour for Model B. Due to obsolete
parts, there is a sunk cost of $2700 for model A and $1900 for Model B . If the price of the product is $150 per
unit and the company expects to sell 145,000 units each year, which model should be selected?
Answer: Model A: $652,284 per 145,000 units
Model B: $575,259 per 145,000 units
Select the design that minimizes the total cost for 145,000 units/yearModel B.
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Engineering Economy 16th Edition Sullivan Test Bank
13) A manufacturer of hard board and fiber cement sidings and panels purchased new equipment for its new
product line. Three alternatives are under consideration. The costs associated with each alternative are given
below. Which alternative is most economical to minimize total life cycle costs, if the life of the equipment is
estimated to be 7 years and the company operates on average 3800 hours per year? Assume negligible salvage
value.
Alternative A B C
Investment cost, $ 40,000 39,000 41,000
Fixed cost, $/year 4700 4500 4800
Variable cost, $/hour 240 235 243
14) A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its
low-priced products. The component can be purchased at a variable wholesale price of P = 1200 + 50X, where
X is the number of items. Alternatively, the component can be produced with a direct material cost of $17 per
item and direct labor cost of $38 per item. The manufacturing overhead is allocated at 150% of direct labor cost
per item. If the company requires, on average, 575 items each year, should the item be purchased or
manufactured?
Answer: Purchase: $29,950.00
Manufacture: $64,400.00
Select the option that has the least total costpurchasing the item.
15) An uninterruptible power system manufacturer is currently deciding between two processes for its new
automated assembly system. All defect-free units can be sold at $210 each, and all rejected units can be sold at
$11 for scrap. Other related information for each model is given below.
Process A B
Output rate, units/hour 250 230
Daily available 14 16
production time, hours
Material cost, $/unit 25 25
Variable operating cost, 45 49
$/hour
Variable overhead cost, 40 39
$/hour
Percent reject 40 38
IN HOUSE.
COLORED SCHOOLS.
June 8.—The House passed a bill to provide for the public
instruction of youth in Washington city, with an amendment
providing for separate schools for the colored children, by setting
apart such a proportion of the entire school fund as the number of
colored children between the ages of six and seventeen bear to the
whole number of children in the District. The bill, with amendments,
passed both Houses without a division.
On all of these questions of color, the Democrats invariably, on test
votes, were found against any concession of rights to the negro.
These were frequently aided by some Republicans, more
conservative than their colleagues, or representing closer districts
where political prejudices would affect their return to their seats. It
will be observed that on nearly all these questions Senator Charles
Sumner took the lead. He was at that time pre-eminently the Moses
of the colored man, and led him from one right to another through
Senatorial difficulties, which by the way, were never as strong as that
in the House, where Thaddeus Stevens was the boldest champion of
“the rights of the black man.” In the field, rather in the direction of
what should be done with the “contrabands” and escaped slaves, the
Secretary of War, General Cameron, was their most radical friend,
and his instructions were so outspoken that Lincoln had to modify
them. As early as December 1, 1861, General Cameron wrote:
“While it is plain that the slave property of the South is justly
subjected to all the consequences of this rebellious war, and that the
Government would be untrue to its trust in not employing all the
rights and powers of war to bring it to a speedy close, the details of
the plan for doing so, like all other military measures, must, in a
great degree, be left to be determined by particular exigencies. The
disposition of other property belonging to the rebels that becomes
subject to our arms is governed by the circumstances of the case. The
Government has no power to hold slaves, none to restrain a slave of
his liberty, or to exact his service. It has a right, however, to use the
voluntary service of slaves liberated by war from their rebel masters,
like any other property of the rebels, in whatever mode may be most
efficient for the defence of the Government, the prosecution of the
war, and the suppression of rebellion. It is clearly a right of the
government to arm slaves when it may become necessary as it is to
take gunpowder from the enemy. Whether it is expedient to do so is
purely a military question. The right is unquestionable by the laws of
war. The expediency must be determined by circumstances, keeping
in view the great object of overcoming the rebels, re-establishing the
laws, and restoring peace to the nation.
“It is vain and idle for the Government to carry on this war, or
hope to maintain its existence against rebellious force, without
enjoying all the rights and powers of war. As has been said, the right
to deprive the rebels of their property in slaves and slave labor is as
clear and absolute as the right to take forage from the field, or cotton
from the warehouse, or powder and arms from the magazine. To
leave the enemy in the possession of such property as forage and
cotton and military stores, and the means of constantly reproducing
them, would be madness. It is, therefore, equal madness to leave
them in peaceful and secure possession of slave property, more
valuable and efficient to them for war than forage, cotton and
military stores. Such policy would be national suicide. What to do
with that species of property is a question that time and
circumstances will solve, and need not be anticipated further than to
repeat that they cannot be held by the Government as slaves. It
would be useless to keep them as prisoners of war; and self-
preservation, the highest duty of a Government, or of individuals,
demands that they should be disposed of or employed in the most
effective manner that will tend most speedily to suppress the
insurrection and restore the authority of the Government. If it shall
be found that the men who have been held by the rebels as slaves are
capable of bearing arms and performing efficient military service, it
is the right, and may become the duty, of this Government to arm
and equip them, and employ their services against the rebels, under
proper military regulations, discipline and command.
“But in whatever manner they may be used by the Government, it
is plain that, once liberated by the rebellious act of their masters,
they should never again be restored to bondage. By the master’s
treason and rebellion he forfeits all right to the labor and service of
his slave; and the slave of the rebellious master, by his service to the
Government, becomes justly entitled to freedom and protection.
“The disposition to be made of the slaves of rebels, after the close
of the war, can be safely left to the wisdom and patriotism of
Congress. The representatives of the people will unquestionably
secure to the loyal slaveholders every right to which they are entitled
under the Constitution of the country.”
[Subsequent events proved the wisdom of this policy, and it was
eventually adopted by an Administration which proclaimed its policy
“to move not ahead but with the people.”]
President Lincoln and his Cabinet modified the above language so
as to make it read:
“It is already a grave question what shall be done with those slaves
who were abandoned by their owners on the advance of our troops
into southern territory, as at Beaufort district, in South Carolina. The
number left within our control at that point is very considerable, and
similar cases will probably occur. What shall be done with them? Can
we afford to send them forward to their masters, to be by them
armed against us, or used in producing supplies to sustain the
rebellion? Their labor may be useful to us; withheld from the enemy
it lessens his military resources, and withholding them has no
tendency to induce the horrors of insurrection, even in the rebel
communities. They constitute a military resource, and, being such,
that they should not be turned over to the enemy is too plain to
discuss. Why deprive him of supplies by a blockade, and voluntarily
give him men to produce them?
“The disposition to be made of the slaves of rebels, after the close
of the war, can be safely left to the wisdom and patriotism of
Congress. The Representatives of the people will unquestionably
secure to the loyal slaveholders every right to which they are entitled
under the Constitution of the country.”
Secretary Cameron was at all times in favor of “carrying the war
into Africa” and it was this stern view of the situation which
eventually led him to sanction measures which brought him into
plainer differences with the Administration. Lincoln took offense at
the printing of his report before submitting it to him. As a result he
resigned and went to Russia as Minister, on his return being again
elected to the United States Senate—a place which he filled until the
winter of 1877, when he resigned, and his son, J. Donald Cameron,
was elected to the vacancy, and re-elected for the term ending in
1885. General B. F. Butler was the author of the “contraband” idea. A
year later the views of the Administration became more radical on
questions of color, and July 22, 1862, Secretary Stanton ordered all
Generals in command “to seize and use any property, real or
personal, which may be necessary or convenient for their several
commands, for supplies, or for other military purposes; and that
while property may be destroyed for proper military objects, none
shall be destroyed in wantonness or malice.
“Second. That military and naval commanders shall employ as
laborers, within and from said States, so many persons of African
descent as can be advantageously used for military or naval
purposes, giving them reasonable wages for their labor.
“Third. That, as to both property, and persons of African descent,
accounts shall be kept sufficiently accurate and in detail to show
quantities and amounts, and from whom both property and such
persons shall have come, as a basis upon which compensation can be
made in proper cases; and the several departments of this
Government shall attend to and perform their appropriate parts
towards the execution of these orders.”
The manner and language employed by General McClellan in
promulgating this order to the Army of the Potomac, led to his
political differences with the Administration, and in the end caused
him to be the Democratic candidate for President in 1864, against
Lincoln. His language is peculiar and some of it worthy of
presentation as of political importance. He said:
“Inhabitants, especially women and children, remaining peaceably
at their homes, must not be molested; and wherever commanding
officers find families peculiarly exposed in their persons or property
to marauding from this army, they will, as heretofore, so far as they
can do with safety and without detriment to the service, post guards
for their protection.
“In protecting private property, no reference is intended to
persons held to service or labor by reason of African descent. Such
persons will be regarded by this army, as they heretofore have been,
as occupying simply a peculiar legal status under State laws, which
condition the military authorities of the United States are not
required to regard at all in districts where military operations are
made necessary by the rebellious action of the State governments.
“Persons subject to suspicion of hostile purposes, residing or being
near our forces, will be, as heretofore, subject to arrest and
detention, until the cause or necessity is removed. All such arrested
parties will be sent, as usual, to the Provost Marshal General, with a
statement of the facts in each case.
“The general commanding takes this occasion to remind the
officers and soldiers of this army that we are engaged in supporting
the Constitution and the laws of the United States and suppressing
rebellion against their authority; that we are not engaged in a war of
rapine, revenge, or subjugation; that this is not a contest against
populations, but against armed forces and political organizations;
that it is a struggle carried on with the United States, and should be
conducted by us upon the highest principles known to Christian
civilization.”
At this time such were the prejudices of Union soldiers against
negroes, because of growing political agitation in the North, that
many would loudly jeer them when seen within the lines. The feeling
was even greater in the ranks of civilians, and yet Congress moved
along, step by step. The 37th abolished slavery in the District of
Columbia; prohibited it in all the territories; confirmed the freedom
of the slaves owned by those in arms against the government;
authorized the employment of colored men in fortifications, their
enlistment, etc.; and enacted an additional article of war, which
prohibited any officer from returning or aiding the return of any
fugitive slave. These were rapid strides, but not as rapid as were
demanded by the more radical wing of the Republican party. We
have shown that most of them were opposed by the Democrats, not
solidly sure where they were plainly political, but this party became
less solid as the war advanced.
Senator Wilson was the author of the bill to abolish slavery in the
District of Columbia. It excited much debate, and the range of the
speeches covered the entire question of slavery. Those from the
Border States opposed it (a few Republicans and all Democrats) but
some of the Democrats of the North supported it. The vote in the
Senate was 29 for to 6 against. In the House Frank P. Blair, Jr.,
advocated colonization in connection with the bill, but his idea met
with little favor. Crittenden, Wickliffe and Vallandigham were
prominent in opposition. Its most prominent advocates were Stevens
of Pennsylvania, and Bingham of Ohio. The vote was 92 for to 38
against.
The bill of Arnold, of Illinois, “to render freedom national and
slavery sectional,” the leading idea in the platform of the convention
which nominated Lincoln, prohibited slavery in “all the Territories of
the United States then existing, or thereafter to be formed or
acquired in any way.” It was vehemently opposed, but passed with
some modifications by 58 ayes to 50 noes, and it also passed the
Senate.
In the Spring of 1862 General David Hunter brought the question
of the enlistment of colored troops to a direct issue by raising a
regiment of them. On the 9th of June following, Mr. Wickliffe of
Kentucky, succeeded in getting the House to adopt a resolution of
inquiry. Correspondence followed with General Hunter. He
confessed the fact, stated that “he found his authority in the
instructions of Secretary Cameron, and said that he hoped by fall to
enroll about fifty thousand of these hardy and devoted soldiers.”
When this reply was read in the House it was greeted with shouts of
laughter from the Republicans, and signs of anger from the others. A
great debate followed on the amendment to the bill providing for the
calling out of the militia, clothing the President with full power to
enlist colored troops, and to proclaim “he, his mother, and wife and
children forever free,” after such enlistment. Preston King, of New
York, was the author of this amendment. Davis, of Kentucky, and
Carlisle of West Virginia, were prominent Senators in opposition;
while Ten Eyck, of New Jersey, Sherman of Ohio, and Browning of
Illinois sought to modify it. Garrett Davis said in opposition:
“Do you expect us to give our sanction and approval to these
things? No, no! We would regard their authors as our worst enemies;
and there is no foreign despotism that could come to our rescue, that
we would not fondly embrace, before we would submit to any such
condition of things.”
Senator Fessenden of Maine, in advocacy of the amendment, said:
“I tell the President from my place here as a Senator, and I tell the
generals of our army, they must reverse their practices and course of
proceeding on this subject. * * * Treat your enemies as enemies, as
the worst of enemies, and avail yourselves like men of every power
which God has placed in your hands, to accomplish your purpose,
within the rules of civilized warfare.”
The bill passed, so modified, as to give freedom to all who should
perform military service, but restricting liberty to the families of such
only as belonged to rebel masters. It passed the House July 16th,
1862, and received the sanction of the President, who said:—“And
the promise made must be kept!” General Hunter for his part in
beginning colored enlistments, was outlawed by the Confederate
Congress. Hunter followed with an order freeing the slaves in South
Carolina.
In January, 1863, pursuant to a suggestion in the annual report of
Secretary Stanton, who was by this time as radical as his predecessor
in office, the House passed a bill authorizing the President to enroll
into the land and naval service such number of volunteers of African
descent as he might deem useful to suppress the rebellion, and for
such term as he might prescribe, not exceeding five years. The slaves
of loyal citizens in the Border States were excluded from the
provisions of this bill. In the Senate an adverse report was made on
the ground that the resident already possessed these powers.
In January, 1863, Senator Wilson, who was by this time chairman
of the Military Committee of the Senate, secured the passage of a bill
which authorized a draft for the National forces from the ranks of all
male citizens, and those of foreign birth who had declared their
intentions, etc. The bill contained the usual exemptions.
B. L. Stovall,
Speaker of the Senate.
The Richmond press publish the official copy of “An act to increase
the efficiency of the army by the employment of free negroes and
slaves in certain capacities,” lately passed by the Rebel Congress. The
negroes are to perform “such duties as the Secretary of War or
Commanding General may prescribe.” The first section is as follows:
The Congress of the Confederate States of America do enact, That
all male free negroes, and other free persons of color, not including
those who are free under the treaty of Paris, of 1803, or under the
treaty of Spain, of 1819, resident in the Confederate States, between
the ages of eighteen and fifty years, shall be held liable to perform
such duties with the army, or in connection with the military
defences of the country, in the way of work upon the fortifications, or
in government works for the production or preparation of materials
of war, or in military hospitals, as the Secretary of War or the
Commanding General of the Trans-Mississippi Department may,
from time to time, prescribe; and while engaged in the performances
of such duties shall receive rations and clothing and compensation at
the rate of eleven dollars a month, under such rules and regulations
as the said Secretary may establish: Provided, That the Secretary of
War or the Commanding General of the Trans-Mississippi
Department, with the approval of the President, may exempt from
the operations of this act such free negroes as the interests of the
country may require should be exempted, or such as he may think
proper to exempt on the ground of justice, equity or necessity.
The third section provides that when the Secretary of War shall be
unable to procure the services of slaves in any military department,
then he is authorized to impress the services of as many male slaves,
not to exceed twenty thousand, as may be required, from time to
time, to discharge the duties indicated in the first section of the act.
The owner of the slave is to be paid for his services; or, if he be
killed or “escape to the enemy,” the owner shall receive his full value.
Governor Smith, of Virginia, has made a call for five thousand
male slaves to work on the batteries, to be drawn from fifty counties.
The call for this force has been made by the President under a
resolution of Congress.
RECONSTRUCTION.
In the House as early as Dec. 15, 1863, Henry Winter Davis moved
that so much of the President’s message as relates to the duty of the
United States to guaranty a Republican form of government to the
States in which the governments recognized by the United States
have been abrogated or overthrown, be referred to a select
committee of nine to report the bills necessary and proper for
carrying into execution the foregoing guarantee, was passed, and on
May 4th, 1864, the House adopted the first reconstruction bill by 74
yeas to 66 nays—a strict party vote.[28] The Senate passed it by yeas
18, nays 14—Doolittle, Henderson, Lane of Indiana, Ten Eyck,
Trumbull, and Van Winkle voting with the Democrats against it.
The bill authorizes the President to appoint in each of the States
declared in rebellion, a Provisional Governor, with the pay and
emoluments of a brigadier; to be charged with the civil
administration until a State government therein shall be recognized.
As soon as the military resistance to the United States shall have
been suppressed, and the people sufficiently returned to their
obedience to the Constitution and laws, the Governor shall direct the
marshal of the United States to enroll all the white male citizens of
the United States, resident in the State in their respective counties,
and whenever a majority of them take the oath of allegiance, the
loyal people of the State shall be entitled to elect delegates to a
convention to act upon the re-establishment of a State government—
the proclamation to contain details prescribed. Qualified voters in
the army may vote in their camps. No person who has held or
exercised any civil, military, State, or Confederate office, under the
rebel occupation, and who has voluntarily borne arms against the
United States, shall vote or be eligible as a delegate. The convention
is required to insert in the constitution provisions—
1st. No person who has held or exercised any civil or military
office, (except offices merely ministerial and military offices below a
colonel,) State or Confederate, under the usurping power, shall vote
for, or be a member of the legislature or governor.
2d. Involuntary servitude is forever prohibited, and the freedom of
all persons is guarantied in said State.
3d. No debt, State or Confederate, created by or under the sanction
of the usurping power, shall be recognized or paid by the State.
Upon the adoption of the constitution by the convention, and its
ratification by the electors of the State, the Provisional Governor
shall so certify to the President, who, after obtaining the assent of
Congress, shall, by proclamation, recognize the government as
established, and none other, as the constitutional government of the
State; and from the date of such recognition, and not before,
Senators and Representatives and electors for President and Vice-
President may be elected in such State. Until reorganization the
Provisional Governor shall enforce the laws of the Union and of the
State before the rebellion.
The remaining sections are as follows:
Sec. 12. That all persons held to involuntary servitude or labor in
the States aforesaid are hereby emancipated and discharged
therefrom, and they and their posterity shall be forever free. And if
any such persons or their posterity shall be restrained of liberty,
under pretence of any claim to such service or labor, the courts of the
United States shall, on habeas corpus, discharge them.
Sec. 13. That if any person declared free by this act, or any law of
the United States, or any proclamation of the President, be
restrained of liberty, with intent to be held in or reduced to
involuntary servitude or labor, the person convicted before a court of
competent jurisdiction of such act shall be punished by fine of not
less than $1,500, and be imprisoned not less than five, nor more
than twenty years.
Sec. 14. That every person who shall hereafter hold or exercise any
office, civil or military, except offices merely ministerial and military
offices below the grade of colonel, in the rebel service, State or
Confederate, is hereby declared not to be a citizen of the United
States.
Lincoln’s Proclamation on Reconstruction