Selling, costs

Process Product Reactants needed (lb/lb product) Operating cost ( ) Selling price of product ( )... 

Until recently, the use of ethyl lactate has been limited owing to high production costs selling prices for ethyl lactate have ranged between 3.30 and 4.40/kg, compared with 2.00 and 3.75/kg for conventional solvents... 

Operating cost selling price = 1.3 to 3 X raw material cost with usual value of 2. 

Process Product Reactant Requirements (lb) per lb Product Processing Cost Selling Pijlll of ProdiHl Maximum Production Level (Ib/day)... 

Ethyl lactate is another lactic acid derivative that has been commercialized. An environmentally benign solvent with properties better than that of many conventional petroleum-based solvents, it can be mixed with methyl soyate obtained from soybean oil to produce custom-tailored solvents for various applications. The utilization of ethyl lactate has been limited due to its high manufacturing costs selling prices for ethyl lactate have varied between 3.30 and 4.40/kg, as compared with 2.00 and 3.75/kg for conventional solvents. Owing to advancements in lactic acid fermentation, separations, and conversion technologies, retail costs have been reduced to as low as 1.87/kg (Carole et al., 2004). 

Product Processing cost Selling price Minimum daily... 

Group). This published information can be used to assess at what price a new product will sell or to assess the minimum allowable selling price for given raw materials costs. 

Introduction and Commercial Application JUe objective of performing appraisal activities on discovered accumulations is to reduce the uncertainty in the description of the hydrocarbon reservoir, and to provide information with which to make a decision on the next action. The next action may be, for example, to undertake more appraisal, to commence development, to stop activities, or to sell the prospect. In any case, the appraisal activity should lead to a decision which yields a greater value than the outcome of a decision made in the absence of the information from the appraisal. The improvement in the value of the action, given the appraisal information, should be greater than the cost of the appraisal activities, otherwise the appraisal effort is not worthwhile. 

Erythromycins from Streptomyces erytkreua strains are probably the structurally most complex of the best selling drugs. Erythromycin A costs only about 5 DM per gram. The two principal erythromycins A and B differ only with respect to hydroxylation at C-12. 

Prices of spandex fibers are highly dependent on thread size selling price generally increases as fiber tex decreases. Factors that contribute to the relatively high cost of spandex fibers include (/) the relatively high cost of raw materials, (2) the small size of the spandex market compared to that of hard fibers which limits scale and thus efficiency of production units, and (J) the technical problems associated with stretch fibers that limit productivity rates and conversion efficiencies. 

From the standpoint of commercialization of fuel ceU technologies, there are two challenges initial cost and reHable life. The initial selling price of the 200-kW PAFC power plant from IFC was about 3500/kW. A competitive price is projected to be about 1500/kW orless for the utiHty and commercial on-site markets. For transportation appHcations, cost is also a critical issue. The fuel ceU must compete with conventional mass-produced propulsion systems. Furthermore, it is not clear if the manufacturing cost per kilowatt of small fuel ceU systems can be lower than the cost of much larger units. The life of a fuel ceU stack must be five years minimum for utiHty appHcations, and reHable, maintenance-free operation must be achieved over this time period. The projection for the PAFC stack is a five year life, but reHable operation has yet to be demonstrated for this period. 

The basic metal salts and soaps tend to be less cosdy than the alkyl tin stabilizers for example, in the United States, the market price in 1993 for calcium stearate was about 1.30— 1.60, zinc stearate was 1.70— 2.00, and barium stearate was 2.40— 2.80/kg. Not all of the coadditives are necessary in every PVC compound. Typically, commercial mixed metal stabilizers contain most of the necessary coadditives and usually an epoxy compound and a phosphite are the only additional products that may be added by the processor. The requited costabilizers, however, significantly add to the stabilization costs. Typical phosphites, used in most flexible PVC formulations, are sold for 4.00— 7.50/kg. Typical antioxidants are bisphenol A, selling at 2.00/kg Nnonylphenol at 1.25/kg and BHT at 3.50/kg, respectively. Pricing for ESO is about 2.00— 2.50/kg. Polyols, such as pentaerythritol, used with the barium—cadmium systems, sells at 2.00, whereas the derivative dipentaerythritol costs over three times as much. The P-diketones and specialized dihydropyridines, which are powerful costabilizers for calcium—zinc and barium—zinc systems, are very cosdy. These additives are 10.00 and 20.00/kg, respectively, contributing significantly to the overall stabilizer costs. Hydrotalcites are sold for about 5.00— 7.00/kg. 

M rko-ting RG.(jUirG.mG.ntS. The primary portion of commodity chemical output is often sold on long-term contracts. Selling and service costs are minimal. Eor specialty chemicals, service and selling costs are likely to be high. 

In the past, commodity chemicals were generally priced on the basis of ROl. Capital cost was the most critical item, and those elements that ate related to capital cost were the principal factors in the selling price (excluding taw material cost in some cases). On this basis, a satisfactory ROl resulted in acceptable values for other criteria such as ROS or sales margin. Many analysts favor ROS as a benchmark for comparison because it is up to date and simple and because it is increasingly difficult to determine a tme ROl based on what profits might be on plants built under indation and expensive capital and constmction costs. 

The cost and selling price for matches increase considerably with higher quaUty cover paper, elaborateness of printed messages on and inside the cover (and sometimes even on the splint), and size of the order. In any case, the customer receives exactiy the same high quahty matches and striking strip. 

In 1989 quantity costs, which reflect the lowest cost, of urea molding compounds, were approximately 1.41 /kg ( 0.035/in. for black and brown colors, 1.58/kg ( 0.039/in.for white and ivory special colors are somewhat higher in price. The approximate cost of cellulose-filled melamine molding compound is 1.74/kg ( 0.043/in. ). Glass fiber-filled melamine sells for 7.70/kg ( 0.22/in. ). 

Whereas the manufacturing cost is strongly influenced by energy prices, cost of money, and capital investment, ammonia selling prices are usually deterrnined by supply and demand. Therefore, the profitabiUty of ammonia plants is deterrnined by the margin between cost of production and ammonia price. 

Heat Recovery and Feed Preheating. The objective is to bring the reactants to and from reaction temperature at the least utihty cost, and to recover maximum waste heat at maximum temperature. The impact of feed preheating merits a more careful look. In an exothermic reaction, preheated feed permits the reactor to act as a heat pump, ie, to buy low and sell high. The most common example is combustion-air preheating for a furnace. 

Syrup Mixing and Handling. Most parent companies sell concentrated flavor bases to franchise bottlers and allow the bottlers to mix this with their own sweetener and water. This defrays shipping costs and reduces the labor demand on parent company manufacturing. In return, franchise bothers are able to purchase sweeteners from local suppHers at a substantial discount and reduce their overall costs. 

Total solar salt, NaCl, produced in the world is 90 million tons. Well over that amount of salt is produced in preconcentration ponds as an intermediate step in the production of other chemicals such as potassium chloride. For example, the Dead Sea faciUties produce 40 million tons of salt each year but sell none because of the high cost of transportation to markets. 

The quantity of annual sales is often called the sales volume, although the units may be mass quantities instead of volume units. The estimation of the annual sales volume over the expected life of a production faciHty is extremely difficult. It requites an estimate of the total market, production capabiHties and costs of the competition, market share expected, selling strategy to be employed, and future economic conditions. 

Essence of Profitability. If an investor purchases a computer in the morning and seUs it in the afternoon for a larger sum, then a return on the investment is realized. This is profit a reward for the effort (investment) made. A somewhat more difficult situation is the case of three choices having different purchase costs and expected selling prices ... 

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