The cost of a chemical plant was 5 million dollars produces a product at a rate of 20 millions kilograms per year and the selling price is 0.2 $/kg. If the cost of raw material per kg is 0.1$, the cost of utilities per kg is 0.01$ and labor cost per kg is 0.02 $. Assume that the profit after selling each kg and before taxes is 0.04$. Calculate the break-even point as a fraction or as a percentage of the total production capacity.
The cost of a chemical plant was 5 million dollars produces a product at a rate of 20 millions kilograms per year and the selling price is 0.2 $/kg. If the cost of raw material per kg is 0.1$, the cost of utilities per kg is 0.01$ and labor cost per kg is 0.02 $. Assume that the profit after selling each kg and before taxes is 0.04$. Calculate the break-even point as a fraction or as a percentage of the total production capacity.
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:The cost of a chemical plant
was 5 million dollars produces
a product at a rate of 20
millions kilograms per year and
the selling price is 0.2 $/kg. If
the cost of raw material per kg
is 0.1$, the cost of utilities per
kg is 0.01$ and labor cost per
kg is 0.02 $. Assume that the
profit after selling each kg and
before taxes is 0.04$. Calculate
the break-even point as a
fraction or as a percentage of
the total production capacity.
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