Answer these

In our progressive example, B&T Enterprises is considering the replacement of a 2-year-old kiln with a new one to meet emerging market needs. When the current tunnel kiln was pur- chased 2 years ago for $25 million, an ESL study indicated that the minimum cost life was be- tween 3 and 5 years of the expected 8-year life. The analysis was not very conclusive because the total AW cost curve was flat for most years between 2 and 6, indicating insensitivity of the ESL to changing costs. Now, the same type of question arises for the proposed graphite hearth model that costs $38 million new: What are the ESL and the estimated total AW of costs? The Manager of Critical Equipment at B&T estimates that the market value after only 1 year will drop to $25 million and then retain 75% of the previous year's value over the 12-year expected life. Use this market value series and i = 15% per year to illustrate that an ESL analysis and marginal cost analysis result in exactly the same total AW of cost series.Determine the breakeven point for each plant. Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant, but fixed costs increase by 10%% During this year, the French plant sold 950 units in Europe, and the U.S. plant sold $50 units. Deter- mine the year's profit (loss) for each plant. Hambry's president has a goal of $1 million profit next year at each plant with no revenue or fixed most increases Determine the decreases in dollar amounts and percewages in variable cost neces- sary to meet this goal, if the wamber of units sold is the same as this year.As the price of gasoline goes up, people are will- ing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.90 per gallon and that it went up to $2.98 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 18 miles per gal- lon, what is the round-trip distance you can drive to break even if it will take 20 gallons to fill your tank? Use an interest rate of 8%6 per year. An automobile company is investigating the ad- visability of converting a plant that manufactures economy cars into one that will make retro sports cars. The initial cost for equipment conversion will be $200 million with a 20% salvage value anytime within a 5-year period. The cost of pro- ducing a car will be $21,000, but it is expected to have a selling price of $33,000 to dealers. The production capacity for the first year will be 4000 units. At an interest rate of 12% per year, by what uniform amount will production have to in- crease each year in order for the company to re- cover its investment in 3 years?\f\f