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Chapter 2
Cost Concepts and Design Economics
Where:
cv : variable costs.
CF: Fixed costs.
First derivative, the value of D that maximizes profit.
a.Compare the two sites in their fixed, variable & total costs. Which’s the better
site?
b.For the selected site, how many cubic yards of paving material does the
contractor have to deliver before starting to make a profit if paid $8/yr3
delivered to the job location?
Copyright ©2009 by Pearson Education, Inc.
Engineering Economy, Fourteenth Edition
Upper Saddle River, New Jersey 07458
By William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling
All rights reserved.
2.3 Cost-Driven Design Optimization
Engineers must consider cost in the design of
products, processes and services.
where,
a is a parameter that represents the directly varying cost(s),
b is a parameter that represents the indirectly varying cost(s),
k is a parameter that represents the fixed cost(s), and
X represents the design variable in question.
_ Example 2.6