Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up...
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Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 15227 tonnes of stainless steel sheets in a year. The company pays the steel company $1488 per tonne of stainless steel sheets and each tonne is used to manufacture $2791 worth of elbows and reducers. Variable processing costs are $410 per tonne and fixed processing costs $4.9 million per year at all production levels. Administrative overhead is $3 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $183 per tonne. Determine the break-even volume in terms of percent capacity utilization. Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25 Hint: The fixed costs need to be mulitplied by 1,000,000 Answer: Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 15227 tonnes of stainless steel sheets in a year. The company pays the steel company $1488 per tonne of stainless steel sheets and each tonne is used to manufacture $2791 worth of elbows and reducers. Variable processing costs are $410 per tonne and fixed processing costs $4.9 million per year at all production levels. Administrative overhead is $3 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $183 per tonne. Determine the break-even volume in terms of percent capacity utilization. Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25 Hint: The fixed costs need to be mulitplied by 1,000,000 Answer:
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