Fixed operating costs

Since power is a substantial component of the fixed operating cost of a unit, the operating cost would run approximately seven times more on a scrubber installation. The installation costs of a hot-rolled steel precipitator to handle 100,000 cfm would be between 3.50 and 4.50/cfm as opposed to 1.40 to 1.80/cfm for a venturi scrubbing system. Although the initial capital expenditure is high for the precipitator, if the total operating and capital costs are amortized over an acceptable period of time, 8 to 10 years, the precipitator will prove to be the. lore economically feasible choice because of its low operating and maintenance costs. 

Fixed operating costs costs that do not vary with production rate. These are the bills that have to be paid whatever the quantity produced. 

Sales income = 100 x 103 x 150 Raw material costs = 100 x 103 x 90 Fixed operating costs... 

A process has been developed for a new product for which the market is uncertain. A plant to produce 50,000 t-y 1 requires an investment of 10,000,000, and the expected project life is five years. Fixed operating costs are expected to be 750,000 y 1, and variable operating costs (excluding raw materials) expected to be 40 t-1 product. The stoichiometric raw material costs are 80 t 1 product. The yield of product per ton of raw material is 80%. Tax is paid in the same year... 

The variable part comprise fixed operating costs which tends to make the variable part greater than short run marginal cost. Besides the short run marginal cost is increasing with throughput (which we here consider to be of minor importance). 

The plant supervisor/manager has no control over fixed operating costs, whereas he/she is held accountable for the variable costs. In addition to those costs incurred due to the construction of the plant and/or its operation, each plant, site or product is usually required to contribute towards the general operating expenses of the company. These expenses include general overheads, research and development costs, sales expenses, etc. Each company decides how these costs are apportioned, however as a general indication they may add 20-30% to the direct production costs at site. 

Capital Finance Cost + Variable Production Cost + Fixed Operating Cost... 

Fixed capital cost Ratio method AS 12.9 million Fixed capital cost Factored cost method AS 13.5 million Annual variable production cost A 59.3/tonne (60% acid) Annual fixed operating costs A 3.7 million Capital finance costs (for first 5 years A%5.02 million only) ... 

The fixed operating costs are those that do not change with production level. The most important is the cost of operating, maintenance and service labour, plus its management, but also included are such items as insurances of all kinds, local taxes, waste disposal (which may be a fixed cost rather than a running cost) and energy tax (carbon levy). Apart from labour, the cost of which is based upon the nature of the plant (its complexity, its level of automation), these other fixed costs are usually obtained by factoring from the plant s capital cost. 

The total production cost (variable plus fixed operating costs, overheads and depreciation) when subtracted from the factory netback (total revenues less selling costs) leads to an operating profit, often called gross profit , but more correctly profit before interest and tax (PBIT). From this, then, is subtracted the annual interest paid on the loans... 

Average profit, /hr = Amount of distillate product, kmol = sales value of the product, /kmol = initial raw material charge, kmol = cost of raw material, /kmol = fixed operating cost, /hr = batch time, hr = set up time, hr... 

All the decision variables are subject to constant lower and upper bounds. Cdi, CD2, CB3 and CR1 are the prices of the main-cuts, bottom and off-cut 1 product ( /kmol). CBo is the cost ( /kmol) of the fresh feed mixture and C/c is a fixed operating cost ( /hr). The production times for task 1, task 2 and task 3 (tj, t2 and t3, respectively) and the amounts of the product states (eg. Di, Rh D2, etc.) are again functions of the main decision variables, and their values are given by the following optimisation problems solved in sequence. 

The cost of on-farm ethanol production decreased as processing plant size increased, from a net ethanol cost of 0.55 11 with a plant capacity of 3 x 105 kg feedstock to 0.21 -l-1 for a plant capacity of 4 x 106 kg feedstock (Kosaric et al., 1982). Raw material (Jerusalem artichoke tops and tubers) and by-product credits, from the sale of protein-rich pulp and stillage, remained constant, while fixed operating costs (e.g., depreciation, maintenance, labor, and taxes) were considerably reduced for a larger plant size (Table 14.4). For a plant with a capacity of 4 x 106 kg, ethanol cost was estimated to be about 40% of the price of gasoline in Canada in 1995 (Kosaric and Vardar-Sukan, 2001). 

Fixed Operating Cost 5% /yr of capital 36 0.81 0.22 0.09 could be lower for pipelines... 

Variable Operating Cost Fixed Operating Cost Capital Charges Total Fueling Station Cost... 

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