Oil spill cleanup costs for a nation or region can be estimated by taking the average cost for the specified region and multiplying it byvarious modification factors" that are a function of oil type (light crude, heavy crude, No 4 fuel, etc.), spill size (< 34 tons, 34-340 tons.etc.), location type (offshore, nearshore, in-port), cleanup method (dispersant, burning, manual), and extent of shoreline oiling (0-1 km.2-5 km, etc.). For an average cost of $23.100 per liter and modifiers for a region in the United States of 1.350, 0.65, 1.28, 0.25, and1.320 for oil type, spill size, location type, cleanup method, and extent of shoreline oiling, respectively, determine the estimatedcleanup cost per liter of an oil spill in the region of the United States (Round the final answer to three decimal places)The cleanup cost per liter of an oil spill in the region of the United States is estimated to be $

Given:Base Cost: 23.100Oil type factor: 1.35Location type factor: 0.65Cleanup method factor:…

Answered: Oil spill cleanup costs for a nation or…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. (a) Determine the breakeven output (in dollars). (b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a target (operating) profit of $1,500,000. (c) Determine the degree of operating leverage at an output of 400,000 barrels. (d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.
An industrial engineering consulting firm usually observes a 90% learning curve rate in the installation of enterprise level software with its clients. If the first installation required 75 hours, estimate the time required for (a) the fifth, (b) the tenth, and (c) the twentieth installations. (d) Research the AMCF Code of Ethics. How are these similar to and different from engineering society ethics statements from your discipline?
What P(s1) would the decision-maker be indifferent between the "buy" and "make" decisions, all other data input remaining the same?
A vending machine: FC = $1500 per month per site, p = $0.70 per gallon, and v = $0.12 per gallon. a) Find the Breakeven Quantity. b) Determine the total contribution and total profit at sales of Q = 10,000 gallons/site.
A building contractor can source door frames from either a nearby shop or a far-off forest area. The cost details are summarized in the table below. The total requirement of wood for the construction work is 75 tons. Find the best alternative for buying the wooden frames. Also find the economic advantage of the best alternative. Items Nearby Shop Far-off Forest Area Negligible Distance to site 900 km $100 Transportation cost per ton per km Material cost per ton Negligible $ 2,000 $ 1,250
Selling price per large Snowie $ 5.00 Ice per Snowie $ 0.20 Spoon straw (need one per Snowie) $ 0.02 Styrofoam cup (need one per Snowie) $ 0.08 Napkin (need two per Snowie) $ 0.02 Servings per gallon of syrup 28 Cost per gallon of syrup (includes concentrate, preservative, and sugar) $ 8.00 Hourly rate for workers $ 10.00 Event registration fee per day $ 25.00 Electricity, insurance, maintenance, and permit costs per month $ 250.00 Kiosk rental cost per month $ 650.00 Purchase cost of two ice shavers (5-year life) $ 3,180.00 Purchase cost of a flavor station (5-year life) $ 1,080.00 a. Number of days you anticipate opening the kiosk per month 20 b. Number of hours you will work (no wages required) per day 6…
A company sells one of its products for $10.40 per unit. Its fixed costs are $1,560 per month, and the variable cost per unit is $3.90. (a) The break-even volume is the next whole number of units.) units per month. (If necessary, round up to (b) If the selling price decreases by $2.90, the new break-even volume will be units per month. (If necessary, round up to the next whole number of units.)
The profit (in dollars) from the sale of x lawn mowers is P(x)= 20x - 0.02x^2 - 650 (A) Find the average profit per mower if 60 mowers are produced (B) Find the marginal average profit at production level of 60 mowers, and interpret results (C)Use the results from parts A and B to estimate the average profit per mower if 61 mowers are produced (
Suppose ADJ Corporation's break-even sales volume is $450,000 with fixedcosts of $200.000.(a) Compute the contribution margin percentage.(b) Compute the selling price if the variable costs are $ 12 per unit.
C = 140,000 p − 1400 (a) Find the rate of change of cost with respect to p when impurities account for 1% (by volume). (b) Write a sentence that explains the meaning of your answer in part (a) If impurities increase 1%, the cost will increase by the absolute value of this amount.If impurities decrease 1%, the cost will decrease by the absolute value of this amount. If impurities increase 1%, the cost will decrease by the absolute value of this amount.If impurities increase by this percent, the cost will decrease by $10,000.If impurities increase by this percent, the cost will increase by $10,000.
A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $
A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (CF ) is $73,000 per month, and the variable cost (cv) is $83 per unit. The selling price per unit is p = $180 − 0.02(D). For this situation, (a) determine the optimal volume for this product and confirm that a profit occurs (instead of a loss) at this demand. (b) find the volumes at which breakeven occurs; that is, what is the range of profitable demand? Solve by hand and by spreadsheet.

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