Average-unit-cost estimate

Estimated annual production Explosive average unit cost Taggant concentration Encapsulated/ unencapsulated (total pounds) Taggant cost per pound Increased cost per unit of explosives Increase in explosive cost Annual cost for taggant materials (dollars in thousands)... 

The methods for estimating capital investment presented in the preceding sections represent the fundamental approaches that can be used. However, the direct application of these methods can often be accomplished with considerable improvement by considering the fixed-capital investment requirement by parts. With this approach, each identified part is treated as a separate unit to obtain the total investment cost directly related to it. Various forms of compart-mentalization for this type of treatment have been proposed. Included in these are (1) the modular estimate,+ (2) the unit-operations estimated (3) the functional-unit estimate,1 and (4) the average-unit-eost estimate.tt... 

The cost of an initial hatch of 21 units, exchisive of special tools and setting-iip costs, averaged 120 per unit. The average cost of the next hatch of 80 units was 75.81. Let iis establish the learning curve implied hy these data and hence estimate the probable average cost of the next 50 units. We shall establish also the unit-cost curve to be used as a control during follow-iip orders. 

These models, however, can be useful if estimates are to be made of operating costs. By assigning fixed and variable costs to each activity, average and marginal unit costs at each stage of the process can be easily calculated, which will assist in decisions regarding pricing policies or whether to buy in components and materials or make them on site. ATPLAN is an example of a network-based model of this type. 

HelUnger and Fleishman (2000) derived estimates for costs of treating people with HIV disease in the United States using patient-based, payer-based, and provider-based approaches. Based on insurance data from 1996, they calculated average annual cost of treating a person with HIV disease between US 20,000 and US 24,700. 

Disposal costs at various radioactive waste management facilities in the United States range from 20/ft to 1500/ft. ANL used an average disposal cost of 60/ft of treated waste form to estimate the total disposal costs for the hypothetical Ceramicrete prodnct. The estimated cost was 2836/m of waste. According to the ANL, this fignre is lower than the disposal costs for cement, which were estimated at 3700/m (D20934H, p. 15). 

In cases such as the two described, we can visualize a competitive position for LBG. Cost estimates for these "hot, dirty gas" generation systems show a fuel cost of under 3.00/million Btu in 1976 dollars. However, when a purification system for both particulate and sulfur removal is added to these small-size production units, the cost increases drastically. The average output of these small, air-blown gasifiers operating at atmospheric pressure is less than 10 tons of coal/hour. Single train purification systems can handle the gas production from as much as 5,000 tons of coal/day. It is obvious that such large systems are much less costly per unit of production than a small unit handling the gas produced from 200 to 250 tons of coal/day. 

Consider an electrically healed house that has a floor space of 200 m and an average height of 3 m at 1000 m elevation, where the standard atmospheric pressure is 89.6 kPa, The house is maintained at a temperature of 22°C, and the infiltration losses are estimated to amount to 0.7 ACH. Assuming the pressure and the temperature in the house remain constant, determine the amount of energy loss from the house due to infiltration fora day during svhich Ihe average ouidoor temperature is 5°C. Also, determine the cost of this energy loss for that day if the unit cost of electricity in that area is 0,082/kWh. 

Figure 4 Average Cost/Unit from Table 12. Table 12 gives a 79% curve. Cost/unit is the cost of the n h unit average cost/unit is the sum of the unit costs/ . Cost/unit can be estimated by multiplying average cost/unit by the factor from Table 12. The average cost of the first 20 units is estimated as 25.9 from the fitted line the cost of the 20th unit is 25.9(0.658) = 17.0 hr. (From Work Design Industrial Ergonomics, 5th Ed., by S. Konz and S. Johnson. Copyright 2000 by Holcomb Hathaway, Pub., Scottsdale, AZ. Reprinted with permission.)...

A major market for sacrificial anodes not included in Table 4.14 is the domestic water heater market. About 120 million water heaters are in use in the United States. Assuming that 5% of all water heaters get their anodes replaced each year and the cost of a magnesium anode is 150, the annual expenditure of 780 million can be estimated. Annually, about 9.2 million water heaters are replaced. Assuming that 5% of water heater failure is because of corrosion, and an average replacement cost of 1000, an annual expenditure of 460 million can be estimated. Addition of CP cost of 0.98 billion and water heater anode cost of 1.24 billion results in a total cost of 2.22 billion/year. 

Utilities include electricity, steam, process fuel, process water, boiler feedwater, cooDng water, deionized water, compressed air, instrument air, refrigeration, inert gas, and effluent treatment. The unit use is dependent on die process technology, and the cost is site dependent. For each utility, unit use and unit cost should be recorded. The estimated use of utilities for different fertiDzer processes is shown in Table 21.6. Some offsite utilities such as electricity are often priced with a fixed cost component and a variable cost component. The fixed and variable portions need to be calculated separately to provide an average variable cost per unit of production for a given annual production. 

Average order size measures the average quantity per order. The average sale price, order size, incranental fixed cost per order, and iuCTemental variable cost per unit help estimate the contribution from performing the supply chain activity. 

The demonstration provided a practical example on which to base the cost of frozen ground barriers. After subtracting the special expenses for extra sensors and test support, the first year cost per cubic meter for installation and maintenance is estimated as 200, and the average maintenance cost over a 15-year period is estimated as 2.20 per cubic meter per year. The estimate of long term cost is based on calculated thermal losses in a typical soil, equipment amortization expense, power and maintenance costs [Dash 1989]. The cost per unit volume was relatively high because of the small size of the installation. 

Example 4 Estimation of Average Cost of Incremental Units. 9-22... 

A typical CBA involves a description of the expected decrease in emissions and a model of the impact pathways, such as an estimation of the average damage per emission unit. It involves a valuation of damage units such as loss of 1 kg crop, one person admission to hospital due to respiratory infections, etc. As an example, a part of a result table from a study in determining external environmental costs fot the production of electricity from coaU is shown in Table 15.5. 

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