What is the estimated annual profit for a mine

Reference no: EM131505340

Question: The world price of zinc has increased to the point where "moth balled" zinc mines in east Tennessee have been reopened because of their potential profitability.

(a) What is the estimated annual profit for a mine producing 20,000 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $20 million at 100% capacity and fixed costs of $17 million per year.

(b) If production is only 17,000 tons per year, will the mine be profitable?

Reference no: EM131505340

Questions Cloud

What is the domain of profitable demand during a month : A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000.

What is simmel notion of the stranger : What is Simmel's notion of the stranger? What is Du Bois's notion of double consciousness

Find the value of x that gives maximum profit : An electric power plant uses solid waste for fuel in the production of electricity. The cost Y in dollars per hour to produce electricity.

What are most important excel analytical tools you have used : How important to you is it to have an in-depth understanding of Microsoft Excel? What are the most important Excel analytical tools you have used?

What is the estimated annual profit for a mine : The world price of zinc has increased to the point where "moth balled" zinc mines in east Tennessee have been reopened because of their potential profitability.

Create awareness among the employees about the strange event : Create awareness among the employees about the strange events that are taking place and tell them how to be careful by not falling a prey to the scammers.

What is the initial energy state of the electron : An emission line the hydrogen atom has a wavelength of 95.0 nm. What is the initial energy state (ni) of the electron?

How would you advertise print and commercial etc why : How would you advertise (print, commercial, etc.)? Why? How will you get your message across, or what persuasive technique will you use?

What is the breakeven point : A cell phone company has a fixed cost of $1,500,000 per month and a variable cost of $20 per month per subscriber. The company charges $39.95 per month.

User Account

All Pages