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and then will clean up the site, return the land to useable condition, and sell it to a developer. Projected costs associated with the project
and then will clean up the site, return the land to useable condition, and sell it to a developer. Projected costs associated with the project follow: (Click the icon to view the project costs.) Read the requirements. Requirement 1. Assuming that Save Life expects to salvage 70,000 tons of metal from the site, what is the total project life cycle cost? Requirement 2. Suppose Save Life can sell the metal for $110 per ton and wants to earn a profit (before taxes) of $30 per ton. At what price must Save Life sell the land at the end of the project to achieve its target profit per ton? The life-cycle operating income Save Life wants to earn is Now complete the projected life-cycle income statement to determine at what price Save Life must sell the land at the end of the project to achieve its target profit per ton. much would the company have to reduce its total project life-cycle cost? First, compute Save Life's mark-up percentage in requirement 2. Determine the formula, then compute the mark-up percentage. (Round mark-up to the nearest whole percentage.) ==Mark-uppercentage% Finally, how much would Save Life have to reduce its total project life-cycle cost? Save Life would have to reduce its total project life-cycle cost by to maintain the same mark-up percentage as in requirement 2. Data table
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