GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS WITH TWO DECIMAL PLACES, for instance if you compute $77,342.6478 then ENTER 77342.65 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off. PureAqua Inc. is a producer of pure bottled water. The management is considering a proposal to expand its product offerings and start producing bottles of flavored water as well. The proposal calls for a construction of a second bottling plant, identical to the existing one. One of the costs to be included in the economic analysis evaluation study of the newly proposed project is the expected cost of plastic. It is believed the cost of plastic per bottle should be identical to the cost currently experienced in the existing facility. The cost is measured per a batch of bottles. Use the information in the table below on the last 3 years of production to compute the expected monthly cost of plastic per a batch of bottles, assuming the cost of plastic is $4 per pound. Number of Months (out of the 36 total months) Number of pounds of plastic used per batch 16 24 9 25 6 23 26 22 Answer: 4 1 GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS WITH TWO DECIMAL PLACES, for instance if you compute $77,342.6478 then ENTER 77342.65 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off. PureAqua Inc. is a producer of pure bottled water. The management is considering a proposal to expand its product offerings and start producing bottles of flavored water as well. The proposal calls for a construction of a second bottling plant, identical to the existing one. One of the costs to be included in the economic analysis evaluation study of the newly proposed project is the expected cost of plastic. It is believed the cost of plastic per bottle should be identical to the cost currently experienced in the existing facility. The cost is measured per a batch of bottles. Use the information in the table below on the last 3 years of production to compute the expected monthly cost of plastic per a batch of bottles, assuming the cost of plastic is $4 per pound. Number of Months (out of the 36 total months) Number of pounds of plastic used per batch 16 24 9 25 6 23 26 22 Answer: 4 1
