BREAK-EVEN ANALYSIS 1. a) For the standard plant below, estimate the cost of producing one tonne of product assuming operation at full capacity with all the product sold. (Hint: you should take into account the amortised yearly repayment, A) b) Calculate the cost of producing one tonne of product if a plant of double the size were employed, assuming full capacity operation with all the product sold. c) Calculate the effect on cost of producing one tonne of product if operating this larger plant at half capacity Data for standard plant Total capital investment Capacity Fixed operating cost Variable operating costs Breakeven point Plant life 30 million, loaned at 10% interest 45 000 t/y 200/t capacity 200/t produced 75% of capacity 15y use thg quide aiven in the lecture