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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
2
6) The annual fixed cost for an inspecting and profiling web controller manufacturing company are $44,000,
and the variable costs are $38 per unit. If the selling price per unit is p = 495 - 0.57X, what is the company's
range of profitable demand?
Answer: The range of profitable demand is 112 to 689 units per
year.
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.
3
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/year Model B.
4
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 cost purchasing 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
CEREBRAL CONGESTION.
According to Cruzel, cerebral congestion is somewhat frequent in
working oxen subject to continued concussion from the yoke,
especially among animals working on a rocky soil. The condition may
also be produced by prolonged exposure to the sun, as well as by
sudden and intense cold.
Passive cerebral congestion by stasis may be produced by any
cause markedly interfering with the return circulation (pericarditis
due to foreign bodies). Clinically it is of no importance.
The animals, previously in good health, suddenly appear
comatose. They are insensible to stimulation of any kind, the head is
rested on any convenient object or is held stationary, the animal
looks drowsy, the gait is hesitating or vacillating, the respiration slow
or irregular. Left at liberty, the animal does not seem to know where
it is going; indeed, sometimes it is absolutely blind and strikes
against any obstacle in its path, or falls and suffers from epileptiform
convulsions. The cranial region is abnormally warm. The course of
the attack is rapid, and the animal either dies in a state of coma or
convulsions or else recovers rapidly.
Diagnosis. The diagnosis is decidedly difficult; and the
prognosis should be reserved.
Treatment commences with free bleeding, the amount of blood
drawn being proportioned to the animal’s size. The sides of the body
may then be stimulated and a purgative administered.
MENINGITIS.
The generic term “meningitis” includes all inflammations of the
arachnoid, pia mater and internal surface of the dura mater.
These forms of inflammation occur in diseases such as
tuberculosis and in parasitic diseases of the brain. Under other
circumstances, they are rare, and may be produced by very varying
causes.
An epizootic cerebro-spinal meningitis of the bovine species has
also been described, principally in Germany. It seems almost
unknown in France, and French literature contains no well-
authenticated case.
Furthermore, an epizootic cerebro-spinal meningitis of sheep, or
rather of lambs, has been described in Germany, in Italy, and in
France. These descriptions are all open to many objections. It seems
that under the term “cerebro-spinal meningitis” have been grouped
cases of enzootic tetanus, doubtful cases of poisoning, and
particularly cases of cœnurosis in the first stage of development. We
therefore discard these descriptions, which differ too much among
themselves to be of any value.
Causation. Meningitis occurs in the ox and sheep as a
complication of wounds in the cranial region, accompanied by
fissuring of the bone, periostitis, abscess formation, etc.
It is also seen as a complication of fractures of the horns, and old-
standing catarrh of the facial sinuses. In the sheep it follows parasitic
catarrh due to the larvæ of œstridæ.
The meningitis appears, according to circumstances, in the forms
of local meningitis, anterior frontal meningitis, basilar meningitis,
etc. Finally, it may develop as a complication of different diseases,
such as gangrenous coryza, purulent infection, subparotid abscess,
suppurative phlebitis, suppuration of the eye or of the orbit, etc.
Symptoms. It is difficult to detect and interpret the first
symptoms shown, because these chiefly consist in dulness, want of
appetite and constipation, without any particular fever. At a later
stage, excessive excitability is produced by noises, by changes of
light, or by handling. Careful examination of the patients shows a
change in their expression, rapidly followed by contraction and
inequality of the pupils or deviation of the visual axis (strabismus,
squinting). The pulse becomes irregular, as also the respiration. The
appetite is entirely lost, and it is not uncommon to note a contraction
of the muscles of the neck and jaws, as well as inability to move
about and symptoms similar to those of dropsy of the cerebral
ventricles.
The chronic form is rare.
Lesions. The lesions comprise local or general hyperæmia and
exudative inflammation of the pia mater and arachnoid, together
with the formation of false membranes or of pus in the subdural
space. The meninges are partially adherent, and the superficial layers
of the brain are also inflamed by contiguity of tissue.
Diagnosis. The diagnosis must be based on the disturbance of
vision, movement, and appetite, and on the course of the symptoms,
as well as on the external signs in the case of such diseases as are
prone to become complicated with meningitis.
Prognosis. Sooner or later the case is likely to end fatally, and
there is no practical use in treating the patient.
Treatment. If in exceptional cases slaughter is objected to, setons
and blisters may be applied to the poll or the parotid region, or the
parts may be enveloped in ice bags or compresses of iced water
frequently renewed.
ENCEPHALITIS.
Encephalitis, i.e., inflammation of the cerebral substance, is very
closely allied to meningitis; in a great number of cases meningitis
and encephalitis co-exist. In other cases encephalitis may be found
apart from meningitis, and vice versâ. Moreover, many of the
symptoms of meningitis are to be found in cases of encephalitis.
Encephalitis may develop as a complication of meningitis.
Encephalitis may also follow abundant parasitic infestation, as in
cœnurosis (which will be particularly studied as it affects sheep), or
microbic infection, the commonest form of which in the ox is
tuberculosis. The encephalitis may be diffuse or circumscribed,
according to the cause, while the symptoms are varied and
numerous. Very frequently, particularly in cases of tuberculosis,
encephalitis assumes a chronic form.
Symptoms. The earliest symptoms are extremely difficult to
detect, because they are scarcely characteristic and because it is
impossible to ascertain the sensations of the animal.
It is only when the disturbances in walking, in the eyesight, in
swallowing, etc., are noted that suspicion is aroused.
The symptoms may appear suddenly. Nevertheless it is beyond
doubt that there are certain slightly marked prodromata, indicated
by diminution of appetite, wasting, and changes in vision. Soon
afterwards occur other forms of disturbance, which may be classified
under the heading of “motor, visual, nervous, and impulsive.” The
patients appear stunned, their movements are slow and hesitating,
they partially lose control over their limbs and display lameness,
with spasmodic movements of one or two limbs. Examination of the
joints shows no injury. The lameness may simultaneously affect two
diagonal limbs or two fore and two hind limbs, or even three limbs.
This lameness is of central origin.
The ocular disturbance is marked by diminution or loss of vision,
by strabismus, or by frequent unconscious movements of the eyes
and eyelids, and also more particularly by inequality, contraction or
dilatation of the pupils.
Nervous, impulsive disturbance is most readily noted when the
animals are at liberty. Even when the sight remains, they seem quite
incapable of avoiding obstacles or as though absolutely forced to
move to the right or left, etc.
Attacks of giddiness, moreover, are not unusual under the
influence of the slightest excitement. During such attacks the
animals thrust the head against a wall, or they involuntarily recoil or
make lateral movements. In many cases these vertiginous attacks
end by the animal falling and showing epileptiform convulsions,
during which it may die.
The symptoms are never the same in two different animals, but
they may easily be classed according to the above indications. The
indications furnished by the condition of the eyes and by the peculiar
impulsive movements are particularly significant.
On the other hand, there are modifications in breathing without
apparent local cause, and difficulty or even impossibility of
swallowing, etc., although there exists no material obstacle.
Diagnosis. The condition is often confused with meningitis, and
the mistake is not serious, because meningitis and encephalitis
frequently accompany one another.
Prognosis. The prognosis must be regarded as fatal. The patients
very seldom recover, and there is no reason for keeping them alive.
Treatment. Here, again, blisters may be applied to the upper
extremity of the neck, or setons may be passed. Cooling applications
to the cranial region have also been suggested. None of these
methods produces more than a temporary palliative effect.
CEREBRAL TUMOURS.
The brain may be injured and compressed by various tumours of
other than parasitic origin. Such tumours may originate in the bones,
the meninges or the choroid plexus, or they may simply be due to
generalisation of a previously existing tumour. Whilst of very varied
origin and nature, all tumours of the cranial cavity have one common
effect, viz., to compress the brain. This continuous compression
causes progressive atrophy of the brain, but its existence is not
always suspected, because the lesions may not give rise to any
marked symptoms.
The hind portions of the hemispheres and the white substance are
generally very tolerant. The front portions, on the other hand—the
frontal lobes and the grey substance—resent compression, which
provokes various symptoms in consequence.
The symptoms of compression and atrophy of the brain differ
greatly, a fact which is easily understood, inasmuch as the seat of the
change may vary, and therefore it is possible only to trace the chief
manifestations, which suggest the existence of a cerebral tumour.
The general changes are indicated by signs precisely similar to
those so common in horses with dropsy of the ventricles (general
depression, inability to back, long intervals between the prehension
of successive mouthfuls of food, sudden cessation of mastication,
etc.), by an impulsive or automatic gait, and by the assumption of
strange attitudes (kneeling down in front, etc.). When at rest the
animals appear to be in a state of continual torpor.
Special symptoms sometimes occur, which enable the seat of the
injury to be localised in more or less exact fashion. These symptoms
affect the vision (amblyopia, amaurosis, strabismus, nystagmus),
general sensibility (hyperæsthesia, anæsthesia, etc.), and the power
of movement (total, partial or crossed hemiplegia, want of co-
ordination of movements, etc.).
Trifling stimuli almost always lead to marked and even
epileptiform attacks.
The diagnosis of cerebral tumours is very difficult, particularly
when attempts are made to indicate their exact seat, but that of other
cerebral lesions is somewhat easier.
The prognosis is very grave, and in the case of domestic animals
nothing can be done. In the ox intra-cranial operations are difficult,
by reason of the presence of the sinuses which obstruct the approach
to the brain cavity; economically surgical treatment is seldom
advisable.