0 Requirements 1. Prepare an analysis to show whether it is more profitable for BMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignbre coal fines in your analysis.) 2. How would your analysis be affected if the cost of producing raw coal could be held down to $19 per ton? 3. Now consider the potential value of the coal fines and prepare an addendum that shows how their value affects the results of your analysis prepared in requirement 1. B Selling price of raw coal 2 Cost of producing raw coal 3 Selling price of sized and cleaned coal 4 Annual raw coal output 5 Percentage of material weight loss in sizing/cleaning coal lor $31 per ton $20 per ton $37 per ton 10,000,000 tons 10 % Incremental Costs of Sizing & Cleaning Processes $780,000 per year $220,000 per year 7 Direct labor 8 Supervisory personnel Print Percentage or later weigOSS Simg/uiuanny cuan 6 7 Direct labor 8 Supervisory personnel 9 Heavy equipment rental operating, maintenance costs 10 Contract sizing and cleaning 11 Outbound rail freight 12 Percentage of sizing cleaning waste that can be salvaged for coal fines 13 Range of costs per ton for preparing coal fine for sale 14 Range of coal fine selling prices (per ton) TTU Incremental Costs of Sizing & Cleaning Processes $780,000 per year $220,000 per year $30,000 per month $3.30 per ton of raw coal $290 per 60-ton rail car 75% $2 S $15 $ 25 Buffalo Mining Company (BMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to possibility of further processing the raw coal by sizing and cleaning it and selling it to an expanded set of customers at higher prices. The option of bu financially infeasible. Instead, Amy Kimbell, a mining engineer, is asked to explore outside-contracting arrangements for the cleaning and sizing proces Click the icon to view the summary) (Click the icon to view additional information.) Read the requirements Requirement 1. Prepare an analysis to show whether it is more profitable for BMC to continue selling raw bulk coal or to process it further through sizi Begin by calculating the incremental sales revenue, then incremental costs and finally incremental gain or loss. (Do not round until the final answer for e parentheses or a minus sign for losses) Incremental sales revenues Sales revenue after further processing Sales revenue from bulk raw coal Enter any number in the edit fields and then click Check Answer 5 parts remaining Clear All na one-stop crushing process, and loads the bulk raw coal onto river barges for shipment to customers, BMC's management is currently evaluating the Cleaning it and selling it to an expanded set of customers at higher prices. The option of building a new sizing and cleaning plant is ruled out as being meer, is asked to explore outside contracting arrangements for the cleaning and sizing process, Kimbell puts together the following summary icon to view additional information) is more profitable for BMC to continue selling raw bulk coal or to process it further through sizing and cleaning (ignore con fines in your analysis.) incremental costs and finally incremental gain or loss. (Do not round until the firsal answer for each cost calculation, then round to the nearest dolar Use