A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures 100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total capital investment by using the following cost information given in the tables below, a. The total capital investment b. The total manufacturing cost c. The unit production cost
A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures 100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total capital investment by using the following cost information given in the tables below, a. The total capital investment b. The total manufacturing cost c. The unit production cost
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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Question
![A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures
100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total
capital investment by using the following cost information given in the tables below,
a. The total capital investment
b. The total manufacturing cost
c. The unit production cost
Table 2.1. Ratio factors based on purchased equipment cost
Cost Components
Direct costs ( DPC)
Purchased equipment cost (PEC)
Purchased equipment installation
100
40 (РЕС)
Instrumentation
30 (РЕC)
Piping
25 (PEC)
Electrical
10 (PEC)
Building's + Services
Yard improvements
25 (PEC)
10 (PEC)
Service facilities
50 (РЕC)
Land
10 (PEC)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c89c3ea-8dad-40af-b9ba-99d0a2dfdc68%2F4cad7950-6c21-4b69-b58b-1e73283a4fbb%2Fouugz7f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures
100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total
capital investment by using the following cost information given in the tables below,
a. The total capital investment
b. The total manufacturing cost
c. The unit production cost
Table 2.1. Ratio factors based on purchased equipment cost
Cost Components
Direct costs ( DPC)
Purchased equipment cost (PEC)
Purchased equipment installation
100
40 (РЕС)
Instrumentation
30 (РЕC)
Piping
25 (PEC)
Electrical
10 (PEC)
Building's + Services
Yard improvements
25 (PEC)
10 (PEC)
Service facilities
50 (РЕC)
Land
10 (PEC)
![10 (PEC)
50 (PEC)
Yard improvements
Service facilities
Land
10 (PEC)
Indirect cost (IPC)
Engineering and supervision
Construction expanses
35 (PEC)
30 (PEC)
5 (TDPC+TIPC)
Contractor's fee
Contingency
10 (TDPC+TIPC)
Table 2.2. Costs involved in total product cost
Cost Components
Direct manufacturing cost (DMC)
Raw material cost
20 (FCI)
5 (FCI)
1 (FCI)
1 (DMC)
Waste treatment cost
Utilities
Direct labor cost
Fixed manufacturing cost (FMC)
Depreciation
0.5 (FCI)
Plant overhead cost
0.3 (FMC)
General manufacturing expanses (GME)
Administration cost
0.1 (DMC+FMC)
Research and development
0.05 (GME)
Distribution and selling
0.1 (DMC)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c89c3ea-8dad-40af-b9ba-99d0a2dfdc68%2F4cad7950-6c21-4b69-b58b-1e73283a4fbb%2Fi3c6mbw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10 (PEC)
50 (PEC)
Yard improvements
Service facilities
Land
10 (PEC)
Indirect cost (IPC)
Engineering and supervision
Construction expanses
35 (PEC)
30 (PEC)
5 (TDPC+TIPC)
Contractor's fee
Contingency
10 (TDPC+TIPC)
Table 2.2. Costs involved in total product cost
Cost Components
Direct manufacturing cost (DMC)
Raw material cost
20 (FCI)
5 (FCI)
1 (FCI)
1 (DMC)
Waste treatment cost
Utilities
Direct labor cost
Fixed manufacturing cost (FMC)
Depreciation
0.5 (FCI)
Plant overhead cost
0.3 (FMC)
General manufacturing expanses (GME)
Administration cost
0.1 (DMC+FMC)
Research and development
0.05 (GME)
Distribution and selling
0.1 (DMC)
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