Net-sales price

Net sales price Gross sales price minus freight adjustments. 

The net sale price for white sulfuric acid will vary greatly depending on smelter location and proximity to acid markets, but by way of example may be taken as US 20/t ex works. This represents a credit of 0.865 x 20 = 17.3/t of lead produced, whereas as black acid the return will be around 8.65/t of lead produced. 

NSP = Net-sales price (Offer price without a discount)... 

After extraction of costs such as dealer discount distribution and freight (total about 30%) the net sales are 21 to 28 million a year. Since we calculated a cost price of about 13 dollars per kg phenylalanine (see Table 8.6 13 million per 1,000 tonnes), die gross profit will be 8 to 15 million dollars. 

SAQ 8.7 The product value at 100% capadty will now be (total cost of production + 7 to 15% ROD, ie 16.04 to 1654 + 1.12 to 2.48. So the minimum product value will be 17.16 per kg of L-phenylalanine and the maximum product value 19.02 per kg of L-phenylalanine. It is rattier difficult to say whether this fictitious process would survive or could compete. Actual data are absolutely necessary. On the other hand this exercise gives us a better understanding of process economics and can also be used to compare a fermentative process for the production of amino adds with, for example, a chemo-enzymatic process. Calculate the return on investment over a 15 year period for an amino add fermentation, based on the following data and assumptions. Production capadty = 500 tonnes per annum Selling price of product = 50 kg Cost price of product = 24.5 kg 1 Capital = 40 million Taxes = 50%. Assumptions Cost of dealer discount, distribution and freight = 20% total sales Startup costs = 10% of capital Working capital = 25% of net sales Administration plus R and D costs = 12.5% of net sales. 

Inflation depreciates money in a manner similar to, but different from, the idea of discounting to allow for the time value of money. The effect of inflation on the net cash flow in future years can be allowed for in a similar manner to the net present worth calculation given by equation 6.9, using an inflation rate in place of, or added to, the discount rate r. However, the difficulty is to decide what the inflation rate is likely to be in future years. Also, inflation may well affect the sales price, operating costs and raw material prices differently. One approach is to argue that a decision between alternative projects made without formally considering the effect of inflation on future earnings will still be correct, as inflation is likely to affect the predictions made for both projects in a similar way. 

The seller accepts an offer to purchase a house for 395,000. After paying a brokerage fee that is 5.5% of the sale price, other settlement fees totaling 4% of the sale price, and paying off a loan of 300,000, what are the seller s net proceeds ... 

Net turnover composed of the product of net prices and net sales volume having customer rebates already deducted... 

Annual net sales Pounds of product sold times the net selhng price. Net means that any allowances have been subtracted from the gross selhng price. 

Net sales are the primary source of revenue from goods and services. This figure includes the amount reported after returned goods, discounts, and allowances for price reductions are taken into account. Cost of sales represents all the expenses to convert raw materials to finished products. The major components of these expenses are direct material, direct labor, and overhead. If the cost of sdes is subtracted from net sales, the result is the gross margin. One of the most important items on the income statement is depreciation and amortization. Depreciation is an allowance the federal government permits for the... 

Smelter Acid. If acid is produced involuntarily, as in a smelter operation, it is possible to estimate the cost of acid production in the same manner as that for an elemental sulfur acid plant. To the smelter, however, acid output is simply a mandated concomitant of the process required to produce the metal. Depending on the location of the smelter, the sources of demand, the size of the market, and competition from other producers, the acid sale price may or may not be sufficiently high even to yield a positive net-back, much less a desired rate of return on investment for the acid portion of the operation. This situation does not necessarily lead to closure. Positive or negative, the effect should be registered only in the overall profitability of the entire smelter operation. 

Net revenues (3.3) are calculated by adjusting gross revenues for sales costs incurred in a country. These sales costs include costs for marketing, country management, etc. and are expressed in per cent of the sales price. 

Chemical producers have witnessed a dramatic run-up in their feedstock prices in the last four years, whether natural gas, crude oil derivatives such as naphtha, or petrochemicals such as benzene. The US chemical industry s feedstock bill in 2004, for example, was up USD 31 billion compared with 2002, representing a 57 percent increase in the net sales value of these basic chemicals. This dramatic overall surge conceals a number of different drivers, each with its own dynamics (Fig. 16.1). Basic hydrocarbon costs were up 72 percent, led by crude oil and nat-... 

Net Sales. The net sales is the amount of money received for the goods sold less the amount for returned goods and allowances for reduction in prices (e.g., allowing freight on goods shipped). 

The gross profit margin is found by dividing the gross profits by the net sales, and the result is expressed as a percentage. This ratio is an indication of the effectiveness of a company s pricing, purchasing, and production policies. 

There are a variety of objective functions that are used for economic optimization. Some are quite elegant and incorporate the concept of the time value of money. Examples are net-present-value and discounted cash flow. These methods are preferred by business majors, accountants, and economists because they are more accurate measures of profitability over an extended time period. However, a lot of assumptions must be made in applying these methods, and the accuracy of these assumptions is usually quite hmited. The prediction of future sales, prices of raw materials and products, and construction schedule is usually a guessing game made by marketing and business managers whose track record for predicting the future is almost as poor as the weather man. 

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