A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures 100000...

 

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A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures 100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total capital investment by using the following cost information given in the tables below, a. The total capital investment b. The total manufacturing cost c. The unit production cost Table 2.1. Ratio factors based on purchased equipment cost Cost Components % Direct costs (DPC) Purchased equipment cost (PEC) 100 40 (PEC) Purchased equipment installation Instrumentation 30 (PEC) Piping 25 (PEC) Electrical 10 (PEC) Building's + Services 25 (PEC) Yard improvements 10 (PEC) Service facilities 50 (PEC) Land 10 (PEC) Indirect cost (IPC) Engineering and supervision 35 (PEC) Construction expanses 30 (PEC) Contractor's fee 5 (TDPC+TIPC) Contingency 10 (TDPC+TIPC) Table 2.2. Costs involved in total product cost Cost Components % Direct manufacturing cost (DMC) Raw material cost 20 (FCI) Waste treatment cost 5 (FCI) Utilities 1 (FCI) Direct labor cost 1 (DMC) Fixed manufacturing cost (FMC) Depreciation 0.5 (FCI) Plant overhead cost 0.3 (FMC) General manufacturing expanses (GME) Administration cost 0.1 (DMC+FMC) Research and development 0.05 (GME) Distribution and selling 0.1 (DMC) A chemical process plant that has a total purchased equipment cost of 1250000 TL manufactures 100000 kg of product annually. Estimate if working capital amounts to 15 percent of the total capital investment by using the following cost information given in the tables below, a. The total capital investment b. The total manufacturing cost c. The unit production cost Table 2.1. Ratio factors based on purchased equipment cost Cost Components % Direct costs (DPC) Purchased equipment cost (PEC) 100 40 (PEC) Purchased equipment installation Instrumentation 30 (PEC) Piping 25 (PEC) Electrical 10 (PEC) Building's + Services 25 (PEC) Yard improvements 10 (PEC) Service facilities 50 (PEC) Land 10 (PEC) Indirect cost (IPC) Engineering and supervision 35 (PEC) Construction expanses 30 (PEC) Contractor's fee 5 (TDPC+TIPC) Contingency 10 (TDPC+TIPC) Table 2.2. Costs involved in total product cost Cost Components % Direct manufacturing cost (DMC) Raw material cost 20 (FCI) Waste treatment cost 5 (FCI) Utilities 1 (FCI) Direct labor cost 1 (DMC) Fixed manufacturing cost (FMC) Depreciation 0.5 (FCI) Plant overhead cost 0.3 (FMC) General manufacturing expanses (GME) Administration cost 0.1 (DMC+FMC) Research and development 0.05 (GME) Distribution and selling 0.1 (DMC)

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Solution Purchased Equipment Cosat PEC amount froduce annually 1250000 TL 100000 kg Working Capital ... View the full answer