Question: please assignment due 30 minutes Question 2 5.7-35 marks A company wants to drill two oil wells one at the off the coast of Abu

please assignment due 30 minutes Question 2 please assignment due 30 minutes
Question 2 5.7-35 marks A company wants to drill two oil wells one at the off the coast of Abu Dhabi and the other at Dubai. The fixed cost of drilling a well at Abu Dhabi is $58,000 and at Dubai is $63,000. The variable cost for pumping out a barrel of crude oil at Abu Dhabi is $50 and at Dubai, $49. The revenue generated by each barrel of crud regardless of its source, is $69. a. What is the breakeven point in units and in dollars for the well at Abu Dhabi? b. What is the breakeven point in units and in dollars for the well at Dubai? c. If the expected sales volume is 3800 barrels, which site should be chosen? Justify with rationale d. If the company expects to sell 5500 barrels, which site should be chosen? Justify with rationale e. Find the sales volume at which the profit of Dubai is $1750 more than the profit of Abu Dhabi. I Question 2 5.7-35 marks A company wants to drill two oil wells one at the off the coast of Abu Dhabi and the other at Dubai. The fixed cost of drilling a well at Abu Dhabi is $58,000 and at Dubai is $63,000. The variable cost for pumping out a barrel of crude oil at Abu Dhabi is $50 and at Dubai, $49. The revenue generated by each barrel of crud regardless of its source, is $69. a. What is the breakeven point in units and in dollars for the well at Abu Dhabi? b. What is the breakeven point in units and in dollars for the well at Dubai? c. If the expected sales volume is 3800 barrels, which site should be chosen? Justify with rationale d. If the company expects to sell 5500 barrels, which site should be chosen? Justify with rationale e. Find the sales volume at which the profit of Dubai is $1750 more than the profit of Abu Dhabi

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