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- (30-minute, 25-points).A proposed pasteurized milk.manufacturing plant produces.8,000,000 kg milk per year. The fixed capital investment for the plant is estimatedas-$5,500,000. The cost for raw
- (30-minute, 25-points).A proposed pasteurized milk.manufacturing plant produces.8,000,000 kg milk per year. The fixed capital investment for the plant is estimatedas-$5,500,000. The cost for raw material is $0.35/kg. product; -cost-for-utilities.is $0.25/kg product; cost of operating laboris $0.30/kg. product.-All-other-variable costs occur at an average rate for the industry. Total: fixed cost-excluding depreciation-is-$176,000 per year.:Annual plant overhead: cost-is-$1,854,000.-Assume the annual depreciation is 10% of fixed capital: investment.General expenses excluding Distribution and Marketing cost-is. $1,258,000 per year. The Distribution and Marketing cost-is assumed to be. 11% of total production cost. The selling price of the orange juice is estimated: to be $4/kg.-The-income tax rate-is-35%. Estimate the amount of annual: cash flow-($/year) from the plant. I - (30-minute, 25-points).A proposed pasteurized milk.manufacturing plant produces.8,000,000 kg milk per year. The fixed capital investment for the plant is estimatedas-$5,500,000. The cost for raw material is $0.35/kg. product; -cost-for-utilities.is $0.25/kg product; cost of operating laboris $0.30/kg. product.-All-other-variable costs occur at an average rate for the industry. Total: fixed cost-excluding depreciation-is-$176,000 per year.:Annual plant overhead: cost-is-$1,854,000.-Assume the annual depreciation is 10% of fixed capital: investment.General expenses excluding Distribution and Marketing cost-is. $1,258,000 per year. The Distribution and Marketing cost-is assumed to be. 11% of total production cost. The selling price of the orange juice is estimated: to be $4/kg.-The-income tax rate-is-35%. Estimate the amount of annual: cash flow-($/year) from the plant
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