What would be the total cost of production of plants a and b

Assignment Help Econometrics

Reference no: EM13209896

Chemco operates two plants A and B, which produce the same product. The capacity of plant A is $60,000 gallons while that of B is $80,000 gallons. The annual fixed cost of plant A is $2600000 per year and the variable cost is $32 per gallon. The corresponding values for plant B are $2800000 and $39 per gallon. At present, plants A and B are being operated at 35% and 40% of capacity, respectively.

a. What would be the total cost of production of plants A and B?

b. What would be the total cost and the average unit cost of the total output of both plants?

c. What would be the total cost to the company and cost per gallon if all production were transferred to plant A?

d. What would be the total cost to the company and cost per gallon if all production were transferred to plant B?

Reference no: EM13209896

Questions Cloud

Compute the standard potential for the cell : electrode composed of nickel in a 1.0 M nickel(II) ion solution and another electrode composed of silver in a 1.0 M silver ion solution, connected by a salt bridge. Calculate the standard potential for this cell at 25 °C.

Which must be populated in the code-behind file : which must be populated in the code-behind file. The values of the new controls must be output when a postback is done.

How the chips are to be connected to the address bus : Explain in words how the chips are to be connected to the address bus. Thank You. Please Explain your answer, will help a lot.

Convert the decimal integer : Convert the decimal integer -24 to 16 bit and 32 bit two's complement hexadecimal representation. show your calculations.

What would be the total cost of production of plants a and b : Chemco operates two plants A and B, which produce the same product. The capacity of plant A is $60,000 gallons while that of B is $80,000 gallons. The annual fixed cost of plant A is $2600000 per year and the variable cost is $32 per gallon.

State what reaction inductions can change to favor the minor : Explain why the one product is formed preferentially overthe other. What reaction inductions can you change to favor the formation of the minor product

Explain what is the correct net ionic equation : What is the correct net ionic equation, including all coefficients, charges, and phases, for the following set of reactants?

What would have been the size of the multiplier : Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. If GDP and consumption both rise by $36 billion in the second round of the process, what is the MPC in thi..

What are your choices for leisure : What is the total cost of your leisure choices over the seven-day period and what characteristics make those activities leisure?

User Account

All Pages