For the adipic acid plant in Example 8.2, what is the specified price of fuel used for utility cost estimation?
Explanation
Utility costs are a key component of variable costs, and their calculation depends on the prices of primary energy sources like fuel (natural gas) and electricity.
Other questions
Which of the following are considered variable costs of production?
What is the typical estimation for supervision costs in a chemical plant?
For a process plant that handles solids and has an inside battery limits (ISBL) investment of 200 million dollars, what is the typical estimated annual maintenance cost?
How is the cash cost of production (CCOP) defined?
In the pricing terminology table, what does 'f.o.b.' stand for?
What is the typical cost for sending inert solid wastes to a landfill?
According to the algorithm for assessing the minimum number of shift positions, how many positions are required for a large, standalone, continuous fluid processing plant?
What is the typical estimation for annual insurance costs for a chemical plant?
In the context of corporate overheads, what is a typical initial estimate for General and Administrative (G and A) costs based on labor?
In Example 8.2, what is the specified consumption of phenol to produce adipic acid?
What is the definition of gross profit?
For bulk chemicals and petrochemicals, what percentage of the CCOP do raw materials costs typically represent?
What does the term 'transfer price' refer to?
Using the data from Example 8.2 for an adipic acid plant producing 400,000 metric tons per year, what is the annual cost of the catalysts and chemicals consumable?
What is the typical average salary for a shift position on the United States Gulf Coast (USGC) that can be used for initial estimates?
How are royalties, if not included in a product price, most commonly structured?
In the context of production costs, what does CCOP stand for?
Which of the following pricing terms means 'Cost, insurance, and freight'?
When forecasting prices, which method is noted to be widely used in the fuels and petrochemicals industry because it is easier to predict than the underlying prices of crude oil and natural gas?
What is the primary factor that determines the price of any substance according to the text?
When should a by-product have its fuel value subtracted from its revenue?
What is the typical annual rental cost of land for a plant with few buildings, as a percentage of the ISBL plus OSBL capital cost?
How is the total cost of production (TCOP) calculated?
If a plant's operating labor costs are 1 million dollars and supervision costs are estimated at 25 percent of labor, what is the estimated range for direct salary overhead?
Which of the following describes a situation where a transfer price might be set at the cash cost of production of the supplying plant?
In what situation does the text suggest using ammonia or lime to neutralize spent sulfuric acid?
What is the typical range for direct salary overhead costs as a percentage of labor plus supervision costs?
What does the 'variable contribution margin' indicate about a process?
Which factor is NOT listed as a component of the three main contributions to corporate overhead charges?
For the adipic acid plant in Example 8.2, what is the stoichiometric requirement of phenol in lb per lb of product?
What is the rule of thumb mentioned for the net benefit required for by-product recovery to be economically viable in large plants?
In pricing fundamentals, a supply or demand curve that is steep, where a large change in price makes little difference to quantity, is described as what?
What is the typical cost of wastewater treatment mentioned in the text?
How many operators per shift position are typically assumed for a four-shift rotation in a chemical plant?
In the list of potentially valuable by-products, which substance is mentioned as being recoverable from the products of steam naphtha cracking?
What is the formula for calculating the value of a waste stream as fuel (PWFV)?
What are the three main components that determine the annual cost of a raw material?
What is the typical range for gross margins on food additives and pharmaceutical products?
In the adipic acid plant from Example 8.2, how much water is formed by reaction stoichiometry per year?
What is the typical range for annual property taxes and insurance as a percentage of ISBL fixed capital?
Which of these is NOT a source of price data mentioned in the text?
When is the annual interest on working capital typically treated as a fixed cost of production?
What is the key difference between gross profit and net profit?
In the adipic acid plant in Example 8.2, the total fixed capital cost was estimated at 433.9 million dollars. Using the annualized capital charge ratio (ACCR) for a 10-year life and 15 percent interest, what is the annual capital charge (ACC)?
What does a low gross margin, such as less than 10 percent of revenues, typically indicate for a business sector?
Which of the following is NOT a reason that fixed costs create a strong disincentive for building small plants?
What is the primary information provided by the 'variable contribution margin'?
In Example 8.2, what is the estimated total fixed cost of production for the adipic acid plant?
Which of these is NOT considered a fixed cost of production?