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morpeh
2 months ago
13

The steam requirements of a manufacturing facility are being met by a boiler whose rated heat input is 5.5 × 106 Btu/h. The comb

ustion efficiency of the boiler is measured to be 0.7 by a hand-held flue gas analyzer. After tuning up the boiler, the combustion efficiency rises to 0.8. The boiler operates 5200 h a year intermittently. Taking the unit cost of energy to be $23/106 Btu, determine the annual energy and cost savings as a result of tuning up the boiler.
Business
1 answer:
marusya05 [3.7K]2 months ago
4 0

Solution:

Given Information,

Heat input = ( Q_{in} ) = 5.5 × 10^{6} Btu/h

Efficiency of combustion for the boiler (n_{furnance}) = 0.7

Efficiency after adjustments (n_{furnance,now}) = 0.8

Operating Hours (t) = 5200h

Unit cost (c) = \frac{23 dollar}{10^{6}Btu }

Calculate heat output from the boiler Q_{out} = Q_{in} x n_{furnance}

= 5.5 x 10^{6} x 0.7

= 3.85 x 10^{6} Btu/h

Now determine the heat input after the upgrade

(Q_{in} ){new} = Q_{out} / (n_{furnance} ){new}

= 3.85 x 10^{6} / 0.8

= 4.8125 x 10^{6} Btu/h

Calculate the energy conserved post-tuning

(Q_{in} ){saved} = Q_{in} - (Q_{in} ){new}

= 5.5 x 10^{6} - 4.8125 x 10^{6} Btu/h

= 0.6875 x 10^{6} Btu/h

Calculate the yearly energy savings ( E_{Saving} )

E_{Saving} = (Q_{in} ){saved} x t

= ( 0.6875 x 10^{6} Btu/h ) ( 5200 hr/yr)

= 3575 x 10^{6} Btu/h

Lastly, calculate the annual cost savings

Annual savings = E_{Annual saving} x Unit cost

= 3575 x 10^{6} Btu/h x \frac{23 dollar}{10^{6}Btu }

= 82225

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The River Falls Company has two divisions. The Cutting Division prepares timber at its sawmills. The Coating Division prepares t
stepan [3596]

Answer:

a) With a cost of $11, the operating income amounts to $660,000

b) If the cost is set at $9, the operating income is $540,000

c) Indeed, the manager is concerned with the chosen price. The Cutting Division operates as a cost center.  

Explanation:

a)                                              Cutting                          Assembly

Revenue                              $660,000                       $2,500,000

Cost of services

Incurred                               $660,000                        $360,000

Transferred-in                           $0                              $660,000

Total                                    $660,000                        $1,020,000

Operating income                    $0                              $1,480,000

At a cost of $11, operating income is calculated as 60,000 cords × $11 = $660,000

b)                                            Cutting                            Assembly

Revenue                               $540,000                       $2,500,000

Cost of services

Incurred                               $660,000                        $360,000

Transferred-in                           $0                              $540,000

Total                                    $660,000                        $900,000

Operating income              ($120,000)                       $1,600,000

At a cost of $9, the operating income is 60,000 cords × $9 = $540,000  

5 0
2 months ago
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independe
Scilla [3833]

Answer and Explanation:

The calculation is detailed below:

1. Given that    

The break-even point is 115000 units  

Fixed cost = $349,600  

As we know that  

The Contribution Margin (CM) per unit is

=  Fixed cost  ÷  Break even units  

= $349,600  ÷ 115,000

= 3.04 per unit  

Next

Selling price = Variable cost  +CM per unit

= $4.56 + $3.04

= $7.60 per unit  

2. Given that

Net Income at 15600 units is $166,000  

Fixed cost = $458,000  

So,  

Contribution is

= $458,000 + $166,000

= $624,000  

Now

CM per unit is

= $624,000  ÷ 15,600

= 40 per unit  

The selling price per unit is: 120  

Thus,  

Variable cost per unit is

= $120 - 40

= 80 per unit  

And,

CM ratio is

= CM per unit ÷ Selling price per unit  

= $40 ÷ 120 × 100

= 33.33%  

3. Given that      

Net Operating income = $22,500    

CM ratio = 25%    

Actual revenue = $235,000  

Therefore,  

Contribution earned is

= $235,000 × 25%

= $58,750  

Now

Fixed cost = Contribution - Net income  

= $58,750 - $22,500

=$36,250  

4. Given that      

Variable cost ratio = 56%    

Fixed cost = $103,840    

Break even units= 23600 units

Thus,    

CM per unit is

= $103,840 ÷ 23,600

=$4.40  

CM ratio = 100 - 56% = 44%

And the selling price per unit is

=$4.40 ÷ 44%

=$10 per unit  

Now

Variable cost per unit is

=$10 × 56%

=$5.60 per unit  

And,

Contribution per unit is

= $10 × 44%

=$4.40 per unit

5 0
1 month ago
A company purchased $3,300 worth of merchandise. Transportation costs were an additional $290. The company returned $230 worth o
stepan [3596]
The right choice is option (D). According to the given situation, the details are as follows: Purchase cost = $3,300 Transportation cost = $290 Return value = $230 Discount rate = 3% To find the total cost of merchandise, we follow this procedure: First, we deduct the return value from the purchase value. Then, $3,300 - $230 = $3,070 Now, we apply the discount, which is 3% of $3,070 = $92.10 Net purchase value = $3,070 - $92.10 = $2,977.90 Next, we add the transportation expense to the purchase value: $2,977.90 + $290 = $3,267.90 Thus, the complete cost of this merchandise is $3,267.90.
8 0
1 month ago
​Matthew's Fish Fry has a monthly target operating income of​ $6,600. Variable expenses are​ 80% of sales and monthly fixed expe
Mariulka [3825]

Response:

The right answer is C

Explanation:

To find break-even sales, we use the formula:

Contribution margin ratio = Fixed Cost / Break-even Sales

where

Contribution margin ratio = 1 - Variable costs of 80%

= 20%

The fixed cost amounts to $840

30% = $840 / Break-even Sales

Break-even Sales = $840 / 20%

= $4,200

To find actual sales:

Actual Sales = (Fixed Cost + Target Profit) /  Contribution margin ratio

= ($840 + $6,600) / 20%

= $7,440 / 0.2

= $37,200

To calculate the margin of safety:

Margin of Safety = Actual Sales - Break-even Sales

= $37,200 - $4,200

= $33,000

5 0
2 months ago
On December 31, Year 1, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both
soldi70 [3635]

Response:

Hart's note is to be noted at $10,000 while Maxx's note is to be recognized at $7,820

Justification:

Hart's note, being a current note (maturing within a year), will be listed at future value = $10,000

On the other hand, Marxx's note should be reflected at its present value:

present value = future value x discount factor = {$10,000 [1 + (3% x 5)]} x 0.68

present value = $11,500 x 0.68 = $7,820

*simple interest is utilized to determine the future value of Marxx's obligation since Jet Co. does not apply compound interest

4 0
1 month ago
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