COST MANAGEMENT LOOSELEAF CUSTOM
COST MANAGEMENT LOOSELEAF CUSTOM
8th Edition
ISBN: 9781307659177
Author: BLOCHER
Publisher: MCG/CREATE
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Chapter 11, Problem 48P

1.

To determine

Calculate the most profitable product mix for Company H using the Solver function of Excel.

2.

To determine

Generate and interpret the information contained in the “Sensitivity report” associated with the solution in requirement 1.

3.

To determine

Calculate the most profitable product mix for company H except the preparation time constraint using Solver function of Excel.

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Development costs in preparing the mine $ 3,400,000 Mining equipment 159,600 Construction of various structures on site 77,900 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $12,000. The structures will be torn down.   Geologists estimate that 820,000 tons of ore can be extracted from the mine. After the ore is removed, the land will revert back to the state of New Mexico.   The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs:   Cash Outflow Probability $ 620,000 40% 720,000 30% 820,000 30% Hecala’s credit-adjusted risk-free interest rate is 7%. During 2024, Hecala extracted 122,000 tons of ore from the mine. The company’s fiscal year ends on December 31.   Required: Determine the amount at which Hecala will record the mine. Calculate the…
I mistakenly submitted blurr image please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.
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COST MANAGEMENT LOOSELEAF CUSTOM

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