Business, 17.02.2020 22:04 meganwintergirl
Meiger Mining, Inc., has just discovered two new mining sites for iron ore. Geologists and engineers have come up with the estimates below regarding costs and ore yields if the mines are opened:
Site A Site B
Variable extraction costs per ton $3.80 $4.00
Fixed costs over the life of the mine:
Blasting $150,000 $185,000
Construction 225,000 240,000
Maintenance 25,000 20,000
Restoration costs 40,000 35,000
Total fixed costs $440,000 $480,000
Total tons of ore that can be extracted over the life of the
mine: 200,000 160,000
Meiger's owners currently demand a return of 21 percent of the market price of iron ore.
a. If the current market price of iron ore is $8.22 per ton, what is Meiger's target cost per ton?
b. Given the $8.22 market price, compute the cost per ton for Site A and site B?
c. Should either of the mines be opened? compute the cost per ton for Site A and site B?
d. The engineer working on Site B believes that if a custom conveyor system is installed, the variable extraction cost could be reduced to $3 per ton. The purchase price of the system is $25,000, but the costs to restore the site will increase to $45,000 if it is installed. Given the current $8 market price, compute the cost per ton for Site B?
e. Should either of the mines be opened? compute the cost per ton for site B?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 00:00, billey32
Exercise 4-6 the following balances were taken from the books of alonzo corp. on december 31, 2017. interest revenue $86,000 accumulated depreciation—equipment $40,000 cash 51,000 accumulated depreciation—buildings 28,000 sales revenue 1,380,000 notes receivable 155,000 accounts receivable 150,000 selling expenses 194,000 prepaid insurance 20,000 accounts payable 170,000 sales returns and allowances 150,000 bonds payable 100,000 allowance for doubtful accounts 7,000 administrative and general expenses 97,000 sales discounts 45,000 accrued liabilities 32,000 land 100,000 interest expense 60,000 equipment 200,000 notes payable 100,000 buildings 140,000 loss from earthquake damage 150,000 cost of goods sold 621,000 common stock 500,000 retained earnings 21,000 assume the total effective tax rate on all items is 34%. prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (round earnings per share to 2 decimal places, e. g. 1.48.)
Answers: 2
Business, 22.06.2019 05:40, Jenan25
Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?
Answers: 1
Business, 22.06.2019 15:20, iselloutt4fun
Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?
Answers: 2
Business, 22.06.2019 20:10, Maria3737
Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)
Answers: 1
You know the right answer?
Meiger Mining, Inc., has just discovered two new mining sites for iron ore. Geologists and engineers...
Questions in other subjects:
English, 30.07.2020 03:01
