Let’s work on questions 23-20 from the 2015 First-Class Constructor Examination, specifically multiple-choice questions 17-18 on Engineering Economics

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This post was last edited by Desert Fish on 2015-10-25 08:16. 7. The designed annual production capacity of a certain project is 500,000 units; the annual fixed costs amount to 3 million yuan. The price per unit is 80 yuan, and the sales tax and related fees per unit are 5 yuan. Then the break-even point expressed in terms of the price per unit of product is yuan. A. 91.00 B. 86.00 C. 95.00 D. 85.00 【Answer】A 【Expert Explanation】This question directly uses the formula for calculating break-even points; when the break-even point is expressed in terms of the product price, it is assumed that the production volume reaches the designed level. That is, at the designed production volume, what product price will result in a profit of B=0? ； Plug in the relevant numbers for calculation: P=300/50*80/5=91; choose A ； Refer to the formula on page P36 of the textbook. 18. Regarding the sensitivity factor SAF, the following statement is correct. A. The larger the SAF, the more sensitive indicator A is to the uncertain factor F. B. SAF > 0 indicates that indicator A changes in the same direction as the uncertain factor F. C. SAF represents the ratio between the change in the uncertain factor F and the change in indicator A. D. SAF can directly show the value of indicator A after the change in the uncertain factor F. [Answer] B [Expert Explanation] Refer to page 41 of the textbook; for this question, the correct answer must be selected directly. Option A can be ruled out easily – the greater the absolute value of the sensitivity coefficient, the more sensitive the indicator is. Option B is clearly correct; options C and D can be ignored as they represent incorrect statements.