The landfill for Wellsburg has an area of 30 acres available for receiving waste from the city of 40,000 people who generate 36,000 tons of municipal solid waste (MSW) per year. If the fixed cost of the landfill is $425,000 per year and the operating cost is $14 per ton, how much must the landfill charge per ton of MSW to break even? The landfill charge per ton of MSW to break even is determined to be $
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- The landfill for Wellsburg has an area of 30 acres available for receiving waste from the city of 40,000 people who generate 25,000 tons of municipal solid waste (MSW) per year. If the fixed cost of the landfill is $300,000 per year and the operating cost is $12 per ton, how much must the landfill charge per ton of MSW to break even?Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $340,000 each. The fixed construction cost for the upper deck area is estimated to be $5,780,000, with a variable cost of $170,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? x = (b) Preliminary drawings for the stadium show that space is available for the construction of up to 52 luxury boxes. Promoters indicate that buyers are available and that all 52 could be sold if constructed. (ii) What profit is anticipated? (Enter a negative value if a predicted loss.) $Five thousand new smart camera systems are needed annually to expand the security surveillance of roads, buildings, airports, parks, etc. in a large metropolitan area. The system components can be obtained in one of three ways: (1) Make them in one of three plants partially owned by the government; (2) Buy them off the shelf from the one and only manufacturer; or (3) Contract to have them made to specifications by a vendor. The estimated annual cost for each alternative is dependent upon specifics of the plant, the producer, or the vendor. The information below details the alternative, a probability of occurrence, and the estimated annual cost. (a) Construct and solve a decision tree to determine the least-cost alternative to provide the components. (b) Once you have chosen the alternative on the tree, use a spreadsheet to determine the change in probability that the Buy alternative requires to make it equally attractive with the chosen alternative. Assume that the probability change…
- An online commercial directory service must decide between composing the ads for its clients inhouse or paying a production company to compose them. To develop the ads in-house, the company will have to purchase computers, printers, and a database management system at an estimated cost of $42,000. This equipment will have a useful life of 3 years, after which it will be sold for $2000. The employee who creates the ads will be paid $55,000 per year. In addition, each ad will have an average cost of $10. Alternatively, the company can outsource development at a flat fee of $21 per ad. At an interest rate of 10% per year, how many ads must the company sell each year for the options to just break even?Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the total variable expenses at the breakeven point would be? a.)350 000 b.)750 000 c.)450 000 d.)250 000Polymer Molding, Inc. is considering two processes for manufacturing storm drains. Plan A involves conventional injection molding that will require making a steel mold at a cost of $2 million. The cost for inspecting, maintaining, and cleaning the molds is expected to be $60,000 per year. Since the cost of materials for this plan is expected to be the same as for the other plan, this cost is not included in the comparison. The salvage value for plan A is expected to be 10% of the first cost. Plan B involves using an innovative process known as virtual engineered composites wherein a floating mold uses an operating system that constantly adjusts the water pressure around the mold and the chemicals entering the process. The first cost to tool the floating mold is only $795,000, but because of the newness of the process, personnel and product-reject costs are expected to be higher than for a conventional process. The company expects the operating costs to be $85,000 for the first year and…
- A local factory assembling calculators produces 400 units per month and sells them at P1,800 each. Dividends are 10% on P10,000 shares with par value of P200 each. The fixed operating cost per month is P20,000. Other costs are P1,000 per unit. Determine the break-even point. If only 200 units were produced per month determine the profit or loss.Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $13 million and the M&O cost is estimated at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $18 million, but less contamination will render the M&O cost lower at $0.41 million per year. At an interest rate of 10% per year and a 5-year project period, which system is better—ponds or tubes? Use a present worth analysis.The variable cost of producing specialty value-added stainlesssteel tubing varies according to the quantity produced per year. The variable cost is $500 per ton from 0 to 700 tons. Above this level, the variable cost is different. At this time, we are producing 600 tons per year, and the average cost per ton is $800. Next year, we anticipate ramping up production to 1,000 tons, and the projected average cost for all 1,000 tons will be $710 per ton. Solve, a. What is the current fixed cost? b. If the fixed cost holds constant next year, what is the variable cost of production for tons above 700 tons?
- Authentic Serai Halia is a catering firm that serves variety of authentic traditional Malaysian cuisine. Wasimuddin AW and Saprang J, the restaurant owners want to expand their successful operations to caterfoods for some major events in a neighboring town. After investigating their market segment, they have narrowed their choices to two proposals. First proposal is to project a capacity of 10 events per month.This would result in a cost of RM2,500 a month plus a cost of RM250 per event. Another proposal would have a capacity of 20 events per month, a cost of RM3,200 per month, and a cost of RM190 per event. The firm would charge RM480 for each event. Determine: (a) The break-even volume for each proposal.(b) The profit (or loss) would each proposal produce if monthly demand is 12 events.(c) If monthly demand is 25 events, which proposal would yield the greater profit?Uberya Towing Services repair vehicles that break down at an average 7.5 vehicles per day. The mechanic crew can service an average of 10 vehicles per day. How many vehicles are likely to be in the system at any one time? The crew cost is approximately Php1406 per day. The cost associated with lost productivity from the breakdown is estimated at Php500 per vehicle per day. What is the Expected or Total Cost (Waiting +Service Cost)?A company is considering two alternatives for automating a certain process. Alternative A will have fixed costs of $42,000 per year and will require 2 laborers at $48 per day each. Together, these laborers can generate 100 units of product. Alternative B will have fixed costs of $56,000 per year, but with this alternative, the 3 laborers will generate 200 units of product. In determining the breakeven number of units Q, the total cost per year for Alternative B is represented as:a. [2(48)/100]Qb. [3(48)/200]Qc. [3(48)/200]Q + 56,000d. [2(48)/100]Q + 42,000