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An alumnimum processing company has started a new aluminum mine. Initial exploration and equipment cost the company $10,000,000. Mining costs them $1,000 per ton and
An alumnimum processing company has started a new aluminum mine. Initial exploration and equipment cost the company $10,000,000. Mining costs them $1,000 per ton and shipping costs them $500 per ton. They sell at a price of $3,000 per ton. What is the cost equation? What is the revenue equation? How many tons of aluminum do they need to process to break even? If the company processes and sells 940 tons per day, what is their revenue per day?
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