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Requirements 1. Prepare an analysis to show whether it is more profitable for CMC to continue selling raw bulk coal or to process it further
Requirements 1. Prepare an analysis to show whether it is more profitable for CMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) 2. How would your analysis be affected if the cost of producing raw coal could be held down to $16 per ton? 3. Now consider the potential value of the coal fines and prepare an addendum that shows how their value affects the results of your analysis prepared in requirement 1. Data table Data table More info Kimbell also learns that 75% of the material waste 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. The selling price of coal fines ranges from $15 to $22 per ton, and costs of preparing coal fines for sale range from $2 to $6 per ton Cumberiand Mining Company (CMC) mines cosl, puts it though a one-atep cruching process, ond loads the bulk raw coal onto tivor barges for shipmont to customont. CMC magapenent is currantly evatuating the possblely of furthor processing the row coal by sicing and deaning it and seling a to an expanded sel of customers at higherproes. The option of bulding a new siaing and chaning plane felowing summary Requirement 1. Prepare an analyis to thow whether it is mone profitable for CAdC to continue soling tas buk coal or to process it further through siting and cleanng (lonore coal thes in your akalyis ) Use parenthetes of a minas igh tor tostes)
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