very important term was that the Loutang Power Company would be contracted on a build‚ operate‚ and transfer (BOT) basis and the factory would be given to the Chinese government after 20 years of operation at no cost. The US company provided $500 million in total financing‚ negotiated a fixed price for a coal supply with moisture content between 4%-6% with Pingdingshan‚ and contracted with HPPC for a minimum annual electricity purchase of 3‚000‚000‚000 MWh annually‚ with excess sales at 65% of normal
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1. Business overview & Cost analysis In order to compete with other milkshake shacks on the same beach of the resort‚ the small shake in my shack is priced at $5.00‚ a medium shake costs $7.00‚ and a large shake is priced at $10.00. My shack offers classic flavors of chocolate‚ strawberry and vanilla‚ but also caters to eclectic tastes with raspberry‚ mocha‚ Oreo shakes and many other different flavors. I use chocolate‚ strawberry and other flavored syrup to provide the flavor chosen by customers
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size of tournament is the best way to meet the target. This alternative is practical to save costs and to maximize the profits. I’m going to analyze the costs‚ other alternatives and implement measures to explain how the Craddock Youth Soccer League can benefit from expansion. Analysis: After analyzing the original plan of Craddock Cup‚ I found the classification of costs were not reasonable. Some costs are constant every year and would not change with the tournaments‚ which means they have already
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well as production costs (Albatross Anchor). Cost a) Cost of Production: The cost of manufacturing the bell anchor is $8.00 per pound and the cost of manufacturing the hook anchor is $11.00 per pound‚ yet charge the same amount per unit as their competitors‚ which in turn decreases their profit margins. At this time Albatross is dealing with operations and production obstacles due to the lack of space for the production of both anchors. b) Economies of Scale occur when the cost per unit decreases
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Case StudyPrepared By Trevor Larkan(updated Feb 2014) C.P. Paper Plc Sir James Sinclair‚ Chairman of C.P. Paper plc‚ the UK’s largest coated paper producer‚ had opened the early October 2013 offsite strategic review meeting of senior management in the English Cotswolds with a rather somber outlook. He stated that contrary to the rather pleasant weather now prevailing in the English countryside‚ the company had not met the investment sector’s expectations for the recently ended fiscal year and was
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total revenue of a business or enterprise less the variable costs of that enterprise or business. It can be given in terms of per hectare in the case of crops and on a per head basis in livestock which can be derived from the totals. It is a good indicator of productive and economic efficiency. The term Net margin can be defined as the gross margin of a business or enterprise‚ as worked out by the above definition‚ less the total fixed cost which can be attributed to the business or enterprise. This
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Chapter 13 Risk Analysis and Project Evaluation 13-1. Crusik Distribution Company thinks that there are two possible outcomes for its new facial care product: Either it will be very successful‚ or customers will not appreciate its “unique appeal.” The two outcomes are equally likely‚ but the successful outcome obviously comes with higher revenues. We can picture the situation like this: 50% 40% 30% 20% 10% 0% $1‚000‚000 $5‚000‚000 Thus Crusik’s revenues will be either $1M or $5M. The expected
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operations * Determine if some of the fixed costs can be tied to the level of work and converted to variable costs The immediate concern is the portion of expenses that are fixed costs versus variable costs. Variable costs equal $32‚640 our analysis begins with careful inspection of the variable and fixed costs of Salem Data Services. It is clear the variable costs averaging $32‚640 over the first quarter is not sufficient to overcome the current fixed costs which equal $189‚620. The company should
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department in a large company. Actual Costs Incurred Static Budget Activity level (in units) 200 220 Variable costs: Supplies $4‚050 $4‚906 Power $1‚690 $1‚892 Fixed costs: Administration $6‚240 $6‚200 Depreciation $6‚280 $6‚200 Required: Prepare a report that would be useful in assessing how well costs were controlled in this department. 2. Hempstead Corporation plans to manufacture 8‚000 units over the next month at the following costs: direct materials‚ $480‚000; direct labor
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Question 1- Analyze the following transaction under traditional approach. 18.1.2011 Received a cheque from a customer‚ Sanjay at 5 p.m. Rs.20‚000 19.1.2011 Paid Ramu by cheque Rs.1‚50‚000 20.1.2011 Paid salary Rs. 30‚000 20.1.2011 Paid rent by cheque Rs. 8‚000 21.1.2011 Goods withdrawn for personal use Rs. 5‚000 25.1.2011 Paid an advance to suppliers of goods Rs. 1‚00‚000 26.1.2011 Received an advance from customers Rs. 3‚00‚000 31.1.2011 Paid interest on loan Rs. 5‚000 31.1.2011 Paid
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