Data Table Fixed Variable 595 per ton s to earn a Months 1-24 Months 1-27 Metal extraction and processing Rent on temporary buildings Administration Clean-up Land restoration Cost of selling land $3.500 per month $2,500 per month $6,500 per month $31,000 per month $745,000 total $85 000 total ce Life Cycle Months 25-27 Print Done Clear All A Requirements Ignore the time value of money. 1. Assuming that Life Cycle expects to salvage 50,000 tons of metal from the site, what is the total project life cycle cost? 2. Suppose Life Cycle can sell the metal for $140 per ton and wants to eam a profit (before taxes) of $30 per ton. At what price must Life Cycle sell the land at the end of the project to achieve its target profit per ton? 3. Now suppose Life Cycle can only sell the metal for $130 per ton and the land at $60,000 less than what you calculated in requirement 2. If Life Cycle wanted to maintain the same markup percentage on total project life-cycle cost as in requirement 2, by how much would the company have to reduce its total project life-cycle cost? wants to earn a price Life Cycle Print Done rint Done Life Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign over the site to Life Cycle at no cost Life Cycle intends to extract scrap metal at the site for 24 months, and then will clean up the site, return the land to useable condition, and sell it to a developer. Projected costs associated with the project follow BH (Click the icon to view the project costs.) Read the requirements Renton temporary buildings 67,500 Administration 175,500 Clean-up 93,000 Land restoration 745,000 85,000 Selling land Total life-cycle cost $ 6,000,000 Requirement 2. Suppose Life Cycle can sell the metal for $140 per ton and wants to earn a profit (before taxes) of $30 per ton. At what price must Life Cycle sell the land at the end of the project to achieve its target profit per ton? SC 9 (sie The life-cycle operating income Life Cycle wants to earn is $1,500,000 Now complete the projected life-cycle income statement to determine at what price Life Cycle must sell the land at the end of the project to achieve its target profit per ton Projected Life Cycle Income Statement Revenue Sale of land Total life cycle cost Life-cycle operating income 1500000 Enter any number in the edit fields and then click Check Answer Clear All Check Answer parts 4 4 remaining