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(b) The annual variable production cost of an ethylene plant is RM 980,000.00. This plant currently operates at 85% of full capacity. On top of that, the sum of annual fixed charges, overhead costs and general expenses is RM 700,000.00 and considered not to change with the production rate. Total annual sales of the plant are RM1.96 million and the product sells for RM 14,000.00 per ton. Determine the break-even point.

(b) The annual variable production cost of an ethylene plant is RM 980,000.00. This plant currently operates at 85% of full capacity. On top of that, the sum of annual fixed charges, overhead costs and general expenses is RM 700,000.00 and considered not to change with the production rate. Total annual sales of the plant are RM1.96 million and the product sells for RM 14,000.00 per ton. Determine the break-even point.

Introduction to Chemical Engineering Thermodynamics
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
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(b) The annual variable production cost of an ethylene plant is RM 980,000.00. This plant currently operates at 85% of full capacity. On top of that, the sum of annual fixed charges, overhead costs and general expenses is RM 700,000.00 and considered not to change with the production rate. Total annual sales of the plant are RM1.96 million and the product sells for RM 14,000.00 per ton. Determine the break-even point.
Transcribed Image Text:(b) The annual variable production cost of an ethylene plant is RM 980,000.00. This plant currently operates at 85% of full capacity. On top of that, the sum of annual fixed charges, overhead costs and general expenses is RM 700,000.00 and considered not to change with the production rate. Total annual sales of the plant are RM1.96 million and the product sells for RM 14,000.00 per ton. Determine the break-even point.
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