Oil Refinery Cost Management

Data:

• Monthly Fixed Costs: $15,000,000
• Variable Costs per Barrel: $30
• Barrels Refined: 500,000
• Environmental Compliance Costs: $1,000,000

Requirements:

1. Calculate the total monthly costs, including environmental compliance costs.
2. Determine the cost per barrel.
3. Analyze the effect of refining 100,000 more barrels on total and per-barrel costs.
4. Discuss the importance of managing environmental compliance costs.
5. Recommend strategies for optimizing refinery operations.
6. Evaluate the potential savings from investing in eco-friendly technologies.
7. Assess the impact of cost control measures on the company's sustainability initiatives.