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    Ksu - Chemical Engineering Department Che 418 (Chemical Plant Economics and Safety) - Tut #7 (Economics) Name: Id: SN

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    Kunal Khandelwal
    This document contains two economics problems related to a chemical engineering plant. The first problem asks to calculate the manufacturing cost per 100 kg of product given fixed capital investment, annual production output, raw material costs, utility costs, labor costs, plant operating time, and overhead costs. The second problem asks to calculate the fixed cost per kg at the breakeven point for a plant with given annual variable costs, fixed costs, production capacity, selling price, and tax rate if the selling price increases by 10%.

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    Ksu - Chemical Engineering Department Che 418 (Chemical Plant Economics and Safety) - Tut #7 (Economics) Name: Id: SN

    Uploaded by

    Kunal Khandelwal
    73 views1 page
    This document contains two economics problems related to a chemical engineering plant. The first problem asks to calculate the manufacturing cost per 100 kg of product given fixed capital investment, annual production output, raw material costs, utility costs, labor costs, plant operating time, and overhead costs. The second problem asks to calculate the fixed cost per kg at the breakeven point for a plant with given annual variable costs, fixed costs, production capacity, selling price, and tax rate if the selling price increases by 10%.

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    APEstudent_Documents

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    418t7411

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    This document contains two economics problems related to a chemical engineering plant. The first problem asks to calculate the manufacturing cost per 100 kg of product given fixed capital investment, annual production output, raw material costs, utility costs, labor costs, plant operating time, and overhead costs. The second problem asks to calculate the fixed cost per kg at the breakeven point for a plant with given annual variable costs, fixed costs, production capacity, selling price, and tax rate if the selling price increases by 10%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    73 views1 page

    Ksu - Chemical Engineering Department Che 418 (Chemical Plant Economics and Safety) - Tut #7 (Economics) Name: Id: SN

    Uploaded by

    Kunal Khandelwal
    This document contains two economics problems related to a chemical engineering plant. The first problem asks to calculate the manufacturing cost per 100 kg of product given fixed capital investment, annual production output, raw material costs, utility costs, labor costs, plant operating time, and overhead costs. The second problem asks to calculate the fixed cost per kg at the breakeven point for a plant with given annual variable costs, fixed costs, production capacity, selling price, and tax rate if the selling price increases by 10%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    KSU – Chemical Engineering Department

    ChE 418 (Chemical Plant Economics and Safety) – TUT #7 (Economics)


    Name: ID: SN:

    1. Estimate the manufacturing cost per 100 kg of product under the following
    conditions. Use Cost Evaluation Flowsheet.
    Fixed-capital investment = $4 million. Annual production output = 9*106 kg.
    Raw materials cost = $0.25/kg of product.
    Utilities: 800-kPa steam = 50 kg/kg of product. Purchased electric power = 0.9
    kWh/kg of product. Filtered and softened water = 0.083 m3/kg of product.
    Operating labor = 12 persons per shift at $25.00 per employee-hour.
    Plant operates three hundred 24-h days per year.
    Corrosive liquids are involved. A large amount of direct supervision is required.
    There are no patent, royalty, interest, or rent charges. Plant overhead costs amount
    to 50 percent of the cost for operating labor, supervision, and maintenance.

    2. A process plant making 5000 kg/day of a product selling for $1.75/kg has annual
    variable production costs of $2 million at 100 percent capacity and fixed costs of
    $700,000. What is the fixed cost per kilogram at the breakeven point? If the
    selling price of the product is increased by 10 percent, what is the dollar increase
    in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
    Assume 8000 h/y operating time.

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