myTRU Student Portal, Thompso x ACCT_3250_01_202120: Questior X DE 15-24 624 (1).pdf C Get Homework Help With Chegg X + . o a File C:/Users/alwin/Downloads/15-24%20624%20(1).pdf and cleaning it and selling it to an expanded set of customers at higher prices. The option of building a new sizing and cleaning plant is ruled out as being financially infeasible. Instead, Amy Kimbell, a mining engi- neer, is asked to explore outside contracting arrangements for the cleaning and sizing process. Kimbell puts together the following summary: Selling price of raw coal Cost of producing raw coal Selling price of sized and cleaned coal Annual raw coal output Percentage of material weight loss in sizing/cleaning coal $29 per tonne $22 per tonne $36 per tonne 10,000,000 tonnes 6% Incremental Costs of Sizing and Cleaning Processes Direct labour $800,000 per year Supervisory personnel 200,000 per year Heavy equipment: rental, operating, 25,000 per month maintenance costs Contract sizing and cleaning 3.50 per tonne of raw coal Outbound rail freight 240 per 60-tonne rail car Kimbell also learns that 75% of the material loss that occurs in the cleaning and sizing process can be salvaged as coal fines, which can be sold to steel manufacturers for their furnaces. The sale of coal fines is erratic and NMC may need to stockpile it in a protected area for up to one year. The selling price of coal fines ranges from $15 to $24 per tonne and costs of preparing coal fines for sale range from $2 to $4 per tonne. Required 1. Prepare an analysis to show whether it is more profitable for NMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) Howwodvor analysis be affected if the cost of aina row.coalcould be bold down to nortonna 99+ 6 2 Type here to search Ca 4 ENG 10:15 AM 2021-02-11 124 myTRU Student Portal, Thompso x ACCT_3250_01_202120: Questior X DE 15-24 624 (1).pdf C Get Homework Help With Chegg X + . o a File C:/Users/alwin/Downloads/15-24%20624%20(1).pdf and cleaning it and selling it to an expanded set of customers at higher prices. The option of building a new sizing and cleaning plant is ruled out as being financially infeasible. Instead, Amy Kimbell, a mining engi- neer, is asked to explore outside contracting arrangements for the cleaning and sizing process. Kimbell puts together the following summary: Selling price of raw coal Cost of producing raw coal Selling price of sized and cleaned coal Annual raw coal output Percentage of material weight loss in sizing/cleaning coal $29 per tonne $22 per tonne $36 per tonne 10,000,000 tonnes 6% Incremental Costs of Sizing and Cleaning Processes Direct labour $800,000 per year Supervisory personnel 200,000 per year Heavy equipment: rental, operating, 25,000 per month maintenance costs Contract sizing and cleaning 3.50 per tonne of raw coal Outbound rail freight 240 per 60-tonne rail car Kimbell also learns that 75% of the material loss that occurs in the cleaning and sizing process can be salvaged as coal fines, which can be sold to steel manufacturers for their furnaces. The sale of coal fines is erratic and NMC may need to stockpile it in a protected area for up to one year. The selling price of coal fines ranges from $15 to $24 per tonne and costs of preparing coal fines for sale range from $2 to $4 per tonne. Required 1. Prepare an analysis to show whether it is more profitable for NMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) Howwodvor analysis be affected if the cost of aina row.coalcould be bold down to nortonna 99+ 6 2 Type here to search Ca 4 ENG 10:15 AM 2021-02-11 124
