San Diego Mining Company (SMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. SMC's management is currently evaluating the possibility of further processing the raw coal by sizing 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 engineer, is asked to explore outside-contracting arrangements for the cleaning and sizing proceiss. Kimbell puts together the following summary: (Click the icon to view the summary.) (C) (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (lgnore coal fines in your analysis.) Bogin by calculating the incremental sales revenue, then incremental costs and finally incremental gain or loss. (Do not round until the final answer for each cost calculation, then round to the nearest dollar. Use parentheses or a minus sign for losses.) Data table k coal or to process it further through sizng and cleaning tignore coal fines in your analys (Do not round until the final answor for esch cost calculabion, then round to the nearest Requirements More info 1. Propare an analysis to show whether it as more profiable for SMC 10 continue selang raw twek. cood or to process if Auther through siging and cleaning. (bynore coal fnes in your analyya.) 2. How would your analysis be aflected if the cost of producing raw coal could be held den to S10 per ton? 3. Now consider the polential vilue of the coal fies and prepare an addendum that shows how their yalue aflects the results of your analysis propared in regurement 1. Data table 1. Prepare an analysis to show whether it is more proftable for SMC to continve selling raw bukk coal or to process it further through sibing and deaning. (bgnore coal fines in your analysis. ) 2. How would your analysis be affecied the cost of producing raw coal could be held down to $18 per ton? 3. Now consider the potental valie of the coal fines and prepare an addendum that shows how their value affects the resilts of your analysis prepared in segueement 1. San Diego Mining Company (SMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. SMC's management is currently ovaluating the possibility of further processing the raw coal by sizing 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 engineer, is asked to explore outside-contracting arrangements for the cleaning and sizing process. Kimbell puts together the following summary: Click the icon to view the summary.) (1. (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) Begin by calculating the incremental sales revenue, then incremental costs and finally incremental gain or loss. (Do not round until the final answer for each cost calculation, then round to the nearest dollar. Use parentheses or a minus sign for losses.) San Diego Mining Company (SMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. SMC's management is currently evaluating the possibility of further processing the raw coal by sizing 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 engineer, is asked to explore outside-contracting arrangements for the cleaning and sizing proceiss. Kimbell puts together the following summary: (Click the icon to view the summary.) (C) (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (lgnore coal fines in your analysis.) Bogin by calculating the incremental sales revenue, then incremental costs and finally incremental gain or loss. (Do not round until the final answer for each cost calculation, then round to the nearest dollar. Use parentheses or a minus sign for losses.) Data table k coal or to process it further through sizng and cleaning tignore coal fines in your analys (Do not round until the final answor for esch cost calculabion, then round to the nearest Requirements More info 1. Propare an analysis to show whether it as more profiable for SMC 10 continue selang raw twek. cood or to process if Auther through siging and cleaning. (bynore coal fnes in your analyya.) 2. How would your analysis be aflected if the cost of producing raw coal could be held den to S10 per ton? 3. Now consider the polential vilue of the coal fies and prepare an addendum that shows how their yalue aflects the results of your analysis propared in regurement 1. Data table 1. Prepare an analysis to show whether it is more proftable for SMC to continve selling raw bukk coal or to process it further through sibing and deaning. (bgnore coal fines in your analysis. ) 2. How would your analysis be affecied the cost of producing raw coal could be held down to $18 per ton? 3. Now consider the potental valie of the coal fines and prepare an addendum that shows how their value affects the resilts of your analysis prepared in segueement 1. San Diego Mining Company (SMC) mines coal, puts it through a one-step crushing process, and loads the bulk raw coal onto river barges for shipment to customers. SMC's management is currently ovaluating the possibility of further processing the raw coal by sizing 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 engineer, is asked to explore outside-contracting arrangements for the cleaning and sizing process. Kimbell puts together the following summary: Click the icon to view the summary.) (1. (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare an analysis to show whether it is more profitable for SMC to continue selling raw bulk coal or to process it further through sizing and cleaning. (Ignore coal fines in your analysis.) Begin by calculating the incremental sales revenue, then incremental costs and finally incremental gain or loss. (Do not round until the final answer for each cost calculation, then round to the nearest dollar. Use parentheses or a minus sign for losses.)
