Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 22436 tonnes of stainless steel sheets in a year. The company pays the steel company $1328 per tonne of stainless steel sheets and each tonne is used to manufacture $3530 worth of elbows and reducers. Variable processing costs are $497 per tonne and fixed processing costs $3.3 million per year at all production levels. Administrative overhead is $4 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $270 per tonne. Determine the break-even volume in terms of percent capacity utilization. Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25 Hint: The fixed costs need to be mulitplied by 1,000,000 Answer:
Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 22436 tonnes of stainless steel sheets in a year. The company pays the steel company $1328 per tonne of stainless steel sheets and each tonne is used to manufacture $3530 worth of elbows and reducers. Variable processing costs are $497 per tonne and fixed processing costs $3.3 million per year at all production levels. Administrative overhead is $4 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $270 per tonne. Determine the break-even volume in terms of percent capacity utilization. Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25 Hint: The fixed costs need to be mulitplied by 1,000,000 Answer:
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Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company
can process up to 22436 tonnes of stainless steel sheets in a year. The company pays the
steel company $1328 per tonne of stainless steel sheets and each tonne is used to
manufacture $3530 worth of elbows and reducers. Variable processing costs are $497 per
tonne and fixed processing costs $3.3 million per year at all production levels.
Administrative overhead is $4 million per year regardless of the volume of the
production. Marketing and transportation costs work out to be $270 per tonne. Determine
the break-even volume in terms of percent capacity utilization.
Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25
Hint: The fixed costs need to be mulitplied by 1,000,000
Answer:
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