To produce power a sugar mill burns 75kt of bagasse per year derived from250kt of sugar cane input. The mill can choose from three sugar canevarieties. Variety A has emissions factors as given under the NationalGreenhouse Gas Accounts Factors for bagasse. Variety B sugarcane isavailable at a sugarcane price of $0.10 per tonne more than Variety A, thebagasse of which produces only 40 per cent of the N2O emissions of VarietyA. Also available is Variety C sugarcane, which reduces N2O emissions to 20per cent of Variety A but costs $0.15 per tonne of sugarcane more thanVariety A. Assume that the net revenue from electricity sales will be $65/MWh regardless of the carbon price. Assume that the overall systemconversion efficiency (heat to electricity conversion) of the bagasse powerplant is 26%. Using Variety A as a base case: 1. Calculate the averageabatement cost of each of the short term carbon reduction options for thesugar mill. 2. Plot the short run average abatement cost histogram. 3. Plotthe short run marginal abatement cost curve." Calculate and show eachsteps with each explanation with simple english with necessary diagrams"

The updated charts illustrate:1. Short-Run Average Abatement Cost Histogram:This histogram shows the…

Answered: To produce power a sugar mill burns…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 48E

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The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $2.24 per pound, and raw sugar can be sold without further processing for $1.25 per pound. Raw sugar is produced in batches of 34,800 pounds by processing 87,000 pounds of sugar cane, which costs $0.31 per pound of cane. Refined sugar will require additional processing costs of $0.47 per pound of raw sugar, and 1.20 pounds of raw sugar will produce 1 pound of refined sugar. Required: Question Content Area 1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2). If required, do not round interim calculations. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Raw Sugar (Alt. 1) or Process Further into Refined Sugar (Alt. 2)March 24 Sell RawSugar(Alternative 1)…
A farmer in Mankweng is considering replacing 150 hectares of lettuce with 150 hectares of cucumbers. Consider the cost and income information below related to the two enterprises Lettuce Expected yield 6.3 ton/ha Cucumber Expected yeild 5.7 ton/ha Lettuce Input cost per ton R 1 320 Cucumber Input cost per ton R 1 270 Lettuce Expected selling price per ton R 3 200 Cucumber Expected selling price per ton R4 150. I. Calculate the expected change in net income for the farmer’s proposed change. II. Briefly advise the farmer if the change is desirable or not.
Kapekape Corporation produces and sells coffee. It currently roasts coffee using a manual operation but is considering the purchase of machinery to automate its operations. The machine will cost P420,000 and has a useful life of 12 years. The expected annual revenue (50,000 jars) is P210,000 whether the company uses the manual or the automated operation. Under the current set up, variable costs amount to P135,000 while variable costs under the automated operation is expected to be P42,000. Annual fixed costs in the manual operations is expected to be at P30,000 but this will increase by P42,000 if the operation is automated. The company's discount rate is 12 and it uses the straight-line method of depreciation. What will be the effect on the net present value of the decision to automate operations if 60,000 jars instead of 50,000 jars are expected to be sold each year? (Assume no change in cost structure or selling price.) a. no effect b. P52,030 decrease c. P63,179…
6
1. As part of its environmental strategy, the Antland government wishes to reduce the annual consumption of coal- fired electricity by 5%. Antland government economists have analysed data which reveal that the price elasticity of demand for coal-fired electricity is -0.4. Consequently, to achieve its target the Antland government should A reduce the price of coa-fired electricity by 12.5% reduce the price al coal-fred electricity by 2% raise the price or coa-fired electricity by 12.5% raise the price of coal-fired electricity by 2% 2. A consultant has made two statements about the responsibility of a professional accountant to act om the public interest: Satisfying the needs of their clients means that a professional accountant in public practice has fulfilled their responsibility to act in the public interest As part of their public interest responsibility, professional accountants must report acts misconduct which they encounter Are these statements accurate or…
Mercedes Corporation produces and sells coffee. It currently roasts coffee using a manual operation but is considering the purchase of machinery to automate its operations. The machine will cost P420,000 and has a useful life of 12 years. The expected annual revenue (50,000 jars) is P210,000 whether the company uses the manual or the automated operation. Under the current set up, variable costs amount to P135,000 while variable costs under the automated operation is expected to be P42,000. Annual fixed costs in the manual operations is expected to be at P30,000 but this will increase by P42,000 if the operation is automated. The company's discount rate is 12 and it uses the straight-line method of depreciation. What will be the effect on the net present value of the decision to automate operations if 60,000 jars instead of 50,000 jars are expected to be sold each year? (Assume no change in cost structure or selling price.) A. no effect B. P52,030 decrease C. P63,179…
A chemical company produces chemicals for lawn fertilizer. The annual demand for this product, which is produced with a daily production rate of 10000 tons, is 0.6*106 tons. The preparation cost required to carry out the production is 1500 TL and the variable production cost per ton is 3.5 TL. Considering that an annual interest rate of 34% is used and 250 days a year are workeda. What is the optimum amount that should be produced from this chemical?b. How much of a cycle time was produced?
NUBD Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs P60 to buy from farmers and P13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for P29 or processed further for P13 to make the end product industrial fiber that is sold for P61. The cane juice can be sold as is for P40 or processed further for P20 to make the end product molasses that is sold for P67. How much profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?
Lance Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs P60 to buy from farmers and P13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for P29 or processed further for P13 to make the end product industrial fiber that is sold for P61. The cane juice can be sold as is for P40 or processed further for P20 to make the end product molasses that is sold for P67.1. How much profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?
See attached.
Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10, PX-20, and PX-30. At the split-off point, the intermediate products cannot be sold without further processing. A typical batch of PX-10 sells for $110,000 after incurring additional processing costs of $20,000. PX-20 can be sold for $170,000 after additional processing costs of $44,000, and the PX-30 sells for $220,000 but requires additional processing costs of $76,000. The joint costs of processing the Pryex, including the cost of mining, are $240,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs and fill out the following table. PX-10 PX-20 PX-30 Estimated Sales Value at split-off Percent of total sales value at split-off % % % Cost-allocation
Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10, PX-20, and PX-30. At the split-off point, the intermediate products cannot be sold without further processing. A typical batch of PX-10 sells for $111,000 after incurring additional processing costs of $22,000. PX-20 can be sold for $171,000 after additional processing costs of $46,000, and the PX-30 sells for $222,000 but requires additional processing costs of $78,000. The joint costs of processing the Pryex, including the cost of mining, are $242,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts.

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