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olya-2409 [2.1K]
3 years ago
8

For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes t

he most economical way to extract the coal is to stripmine the site. The company is required by environmental regulations to restore the land after it has extracted the coal to a condition suitable for recreational use and—given the intended mining method—estimates restoration costs to be $6 million. Ross Adams’s mining engineers estimate that the site contains 4 million tons of recoverable coal and that it will take approximately four years to complete mining activities. Once restored, the estimated value of the land amounts to $1 million. Ross Adams Mining’s credit-adjusted risk free interest rate is 7%. Required: What should be the depletion rate per ton of coal extracted from this mine? (Do not round intermediate calculations. Round your final answer to 2 decimal places.
Business
1 answer:
ziro4ka [17]3 years ago
8 0

Answer:

$6.25 per ton of coal

Explanation:

the depletion base = purchase cost + restoration costs

  • purchase cost = $20 million
  • restoration costs = $6 million

depletion base = $26,000,000

depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal

The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.

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If the firm is using a fixed-period lot size of two periods, what is the order size for the first order
Eva8 [605]

Answer:

The question is incomplete. The complete question is ---

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:

Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.

If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

280

120

200

160

150

The answer is 150.

Explanation:

For any organization, a lot size or order size is the amount or quantity of products to be made by them. It is the amount amount choosing to make or order.

MRP can be applied to the services when it is mostly focused on service components and material which is the part of that service process.

In the context, Bunny Helpers, have received an order for 100 basket of Deluxe Easter which is to be delivered at the starting  of the week.

Hence, for two periods of a lot size, the first order size should be 150 according to the MRP.

5 0
3 years ago
When considering the gothic tradition in literary production alone, when does it emerge most predominantly?
stira [4]

Answer:

During the 18th century or during the Romantic period.

Explanation:

While the concept of Gothic elements began as early as the 4th century, the literary impact was seen only from the 18th century, during the Romantic period. While the earlier and initial influences were mainly in the architecture and art forms, literary production on this tradition came after more than a decade of its inception.

The Romantics was a period of imaginative and emotional influences into literary works. Writers of this period focus on the individual's emotions and feelings, And in this period of influence, the themes of Romanticism but in a darker way began to be explored, leading to the Gothic literary genre.

Thus, the <u>gothic tradition in literary production alone emerges most predominantly during the 18th century or the Romantic period.</u>

3 0
3 years ago
Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determ
SpyIntel [72]

Answer:

The correct option that should be employed by the company is C) .

Explanation:

Company has identified that its search engine  ( Albert searchware ) is in the growth stage ( which is the second stage in product life cycle ) of its product life cycle , which means here the promotional objective of the growth stage of product life cycle for the company is to persuade its consumers and often direct marketing is the best promotional element that a company can choose, and so the option C is the one that comes closet to this idea.

8 0
3 years ago
Suppose Charlene Brewster has times​ (in seconds) of 8.4​, 8.6​, 8.3​, 8.5​, 8.7​, 8.5 and a performance rating of 110​%. The no
const2013 [10]

Answer:

8.5

Faster than Normal

Explanation:

Charlene Brewster normal time for the operation will be calculated by taking average of times.

( 8.4 + 8.6 + 8.3 + 8.5 + 8.7 + 8.5 ) / 6

= 8.5

The normal time will be calculate by dividing the Charlene Brewster time by performance rating

8.5 / 110% = 7.7

The Charlene work performance is rated as faster than the normal time.

7 0
3 years ago
Suppose the nation of Sugarland consists of 50,000 households, 10 of whom are sugar producers. Arguing that the sugar industry i
blondinia [14]

Answer:

a) The gross cost per household per year of this policy is $2 per household.

b) The policy's benefit per sugar producer per year is $2,500 per producer.

Explanation:

This tariff policy affects households, that loss consumer surplus, and sugar producers, which have a producer surplus gain.

The loss in consumer surplus due to the tariff will be $100,000 per year.

If there are 50,000 households in Sugarland, the cost per household is:

Cost \,per\,household=Consumer\,surplus \,loss/Number\,of\,households\\Cost \,per\,household=100,000/50,000= \$ 2/household

The gross cost per household per year of this policy is $2 per household.

The benefit per sugar produced can be calculated as the total benefit per year (producer surplus) divided by the total amount of sugar producers:

Benefit \,per\,sugar\,producer=Producer\,surplus\,gain/Producers\\\\Benefit \,per\,sugar\,producer=25,000/10=\$ 2,500/producer

The policy's benefit per sugar producer per year is $2,500 per producer.

5 0
3 years ago
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