Selling overhead

In Table 9-28, a correct overhead cost of 2.50 per unit at normal capacity is calculated by taking either 31.25 percent of the direct materials cost, 125 percent of the direct labor cost, or 25 percent of the prime cost. AU these methods give a total cost of 12.50 per unit and a profit of 1.50 per unit for a selling price of 14 per unit. 

The major discharges from sulfuric acid alkylation are the spent caustics from the neutralization of hydrocarbon streams leaving the alkylation reactor. These wastewaters contain dissolved and suspended solids, sulfides, oils, and other contaminants. Water drawn off from the overhead accumulators contains varying amounts of oil, sulfides, and other contaminants, but is not a major source of waste. Most refineries process the waste sulfuric acid stream from the reactor to recover clean acids, use it to neutralize other waste streams, or sell it. 

Some retirees, including professionals, can convert a lifelong hobby into a Plan B that makes money. Others study themselves, look around their communities, and establish low-overhead businesses that provide both involvement and money but do not interfere with their leisure hours. The possibilities are endless, but most retirees are not in a position to create their own jobs. To get a job, they must sell themselves to an employer. They must find a firm that sees the value of having them on the payroll. 

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... 

The overall purification yield of recombinant enzyme is affected by the scale-up and may vary from plant to plant. The profitability at lower yields and at a constant selling price was also determined. A 10% reduction in yield resulted in a 12.9% decrease in the ROI. Conversely, the effect of increasing the plant capacity between 4545 (base case) and 45,450 kg of corn per batch on rGUS production, capital investment, UPC and ROI was estimated. A five-fold increase in capacity resulted in a reduction of 30% in the UPC, and an increase in the ROI from 52 to 91%. Further increase in the capacity did not have a significant effect on the UPC and ROI. With a five-fold increase in the capacity the total capital investment increased by a factor of 3.3, labor, administrative, and overhead expenses doubled, and the rest of the operating costs increased proportionally with the capacity. 

Solution. The break-even point (Fig. 6-3) occurs when the total annual product cost equals the total annual sales. The total annual product cost is the sum of the fixed costs (including fixed charges, overhead, and general expenses) and the direct production costs for n units per year. The total annual sales is the product of the number of units and the selling price per unit. Thus... 

Cost accounting is the name traditionally given to accounting for manufacturing costs. The manufacturing cost of a product is traditionally taken as the sum of the costs for (1) direct materials, (2) direct labor, (3) manufacturing overheads, and (4) administration, selling, and finance. 

In this context it is important to note that future prices for ionic liquids will not only be determined by the price of the starting materials, besides those variable costs, fectors such as complexity of manufacturing processes, certain quality requirements, IP-costs together with the notification costs for new substances, contribute significantly to the price of ionic hquids. Furthermore, operational costs such as rent for production facilities, deviation of production equipment, waste disposal and overheads, to name but a few, need to be incorporated into the selling prices for ionic liquids. 

Performance evaluation in these companies usually focuses on cost, with the budget as the primary control. Procurement is measured on the purchase cost of material and material overhead rates. Manufacturing has measures such as direct labor productivity and the cost of quality of delivered products. Distribution effectiveness is measured on the percentage of selling price represented by distribution cost and inventory turnover rates. 

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