Distrigas Corporation

Advanced Fuels Corporation (AFC) was founded five years ago by Dr. Zachary Aplin. In the fourth year of research he and his two –member staff made a major break-through that can convert grain waste products into ethanol which can mix with gasoline to produce a better burning automobile fuel. Producing ethanol from waste products would lower its cost dramatically so the market potential of the blended fuel would be increased. After AFC receiving a patent for Dr. Aplin’s unique ethanol production process he decided to broaden the scope of operations of the company but he doesn’t have additional funds to put in. So, he developed

effective cost of { [ (1 + .15/365)^365 ] - 1 } * 100 = 16.18% per year.

Husky Energy Inc. is a company that produces several different forms of energy but most specifically known for their crude oil work. They do work with natural gas and several different kinds of oil (Warnock, 1). They are well known for their gas and diesel sales as the “Husky” or “Husky Truck Stop” gas bars. They began as a small oil refinery back in 1938 out of Cody, Wyoming, U.S (History). Their growth began slowly, but 1970’s, they had grown nationally, were able to be sold on the stock market in North America, and exceeded 1 billion dollars in value (History). Natural gas is becoming a huge player in the Husky Energy Inc. plan as they have natural gas asset “Liwan” valued at 6.5 billion split at 49/51 with China’s CNOOC Ltd. (Catteneo). The relationship between CNOOC has been going on for many years thanks to their current owner.

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

track to deliver electricity to residential users at a cost on par with natural gas

Fauquier Gas Company is one of the nation 's 440 gas companies. Fauquier served an area where land use was changing from agricultural to residential and commercial. The manager of supply management for the Fauquier Gas Company in the Carolinas is, Mr. Bill Murphy. Mr. Murphy is responsible for purchasing material used in all of Fauquier’s projects for gas distribution such as fitting, pipes and meters. Mr. Murphy found out in January that Fauquier has a big project to meet the increased demand for gas that is scheduled to be complete by September. Mr. Murphy is concerned about being able to find a supplier who could deliver the request of 3 ½ miles of large-diameter pipe for a new residential and commercial development by construction time of June. Mr. Murphy needs the approved purchase request immediately so he can contact mills and get quotations on prices and delivery dates. He needs to acquire 3.5 miles worth of large diameter pipe for the residential and commercial development. The mills schedules for pipe production require a substantial lead-time. Mr. Murphy is also concerned that the mills would not be able to accommodate Fauquier 's schedule. Both the design and construction organizations are who develop and approve the purchase request; both sections are under the management control of the vice president of operations. Mr. Wilson informed Mr. Murphy that the request would be for ¾ inch wall thickness and 57 feet instead of the normal request of ¾

The importance of natural gas is to replace the role of oil in the economy. Natural gas is good for the US because it can produce natural gas domestically. It has plenty of energy for use in people’s homes and in industry. It will help the US economy cope with the depletion of peak oil production. Crude oil is nearly three times as expensive as Natural gas. (Pipeline, 2009-2013)

The estimate of total potential market for heater/blower unit is 2737 units and 2737000 units for blankets (see exhibit 1). The direct cost of the heater/blower unit would be $380 and $0.85 per blanket. The initial investment, $500,000, for this system would cover the fixed cost of the company during first year of operation. Based on this basic information and other considerations, the company has to determine its pricing strategy for both

We can assume the blanket price is $26, because the list from $20 to $26, and we don’t charge the heater/blower. Due to the good facility, we can set the market share at 15%, so the blanket unit =31,365*60%*15%/8=352.

b. If we assume 2004 prices of 45.91 €/mtt. What does the new break-even level do to the utilization rate, given its new capacity level? What can you say about its effect upon Aget’s pricing?

The product my business has chose to produce is water bottles. After some research it can be said that the typical production cost of one water bottle unit is $20. Total fixed costs for my company including rent and utilities are $4000 per month. Given these numbers a linear cost function for my product can be constructed; C(x) = 20x + 4000. In this equation x represents water bottles produced each month at a price of $20 along with $4000 of total fixed costs. An estimated total cost per month can then be determined of $120,000 looking at what the company can afford. Using the cost function C(x), we can plug in 120,000 to then determine the number of water bottles produced each month, which will be x. The beginning equation is C(120000) = 20x + 4000, begin by subtracting 4000 from each side leaving us with 116000 = 20x then divide both sides of the equation by 20 to get a final answer of x = 5800. This is the number of bottles produced each month.

Here elasticity of demand for parking lot space is -2, price is $8 per day, marginal cost MC is zero and capacity is 80%

To dig deeper, the first number we need to know is how many computer hours PDS has to sale to break even. We will assume the intercompany hours billed at $400 will average 205 per month. There are a few variable costs, such as power, parts of operation wages, and materials. Next, we calculate the unit contribution, which is (sales – variable cost). The average cost for power is the total 3 month power cost divided by the total time computers were used during this time(total revenue plus service hours) or 5028/1110=$4.53.

The Darby Company is re-evaluating its current production and distribution system in order to determine whether it is cost-effective or if a different approach should be considered. The company produces meters that measure the consumption of electrical power. Currently, they produce these meters are two locations – El Paso, Texas and San Bernardino, California. The San Bernardino plant is newer, and therefore the technology is more effective, meaning that their cost per unit is $10.00, while the El Paso plant produces at $10.50. However, the El Paso plant has a higher capacity at 30,000 to San Bernardino’s 20,000. Once manufactured, the meters are sent to one of three distribution centers – Ft. Worth, Texas, Santa

Like a piped location gas vendor, this present as well as product sales amount was 3.66 billion cubic meters to the year connected with 2012. The particular Party has set up eighty undertaking firms with age 14 provinces as well as is the owner of greater than 50 location gas team functioning legal rights. The particular Party has concluded this growth as well as connection connected with 5, 000 miles medium-low strain location gas pipeline systems as well as eight hundred miles high-pressure branch pipeline that provide stable availability of gas resources to help community house, industrial,