Variable production costs

Direct material plus direct labor plus other direct production expenses. (This is the total variable production cost.)... 

Total variable production cost plus fixed production overhead cost. 

Variable production costs cPvpc are related to process quantity on a value per ton basis in resource-specific currency Vjr,. v e /. ... 

Production quantities are differentiated in process, input and output quantities. The process quantity xPprocess, / r,s e IP5, teT is determined by process hours and throughput. Variable production costs v P, V r,.v e Ipi, teT depend on the process quantity. The sum of all process quantities on a resource is the resource quantity x ... 

Variable production costs for a process are equal to process quantity multiplied by variable production cost rate per ton. 

Monthly variable production costs sum up all variable production costs across all processes and resources evaluated with the resource exchange rate factor. 

To maintain the acidity of the brine at pH5, more hydrochloric acid is required during hypochlorite recycling to the feed brine. This extra acid demand is the cause of the largest increase of variable production costs - approximately 100 000 Dutch guilders per year. Alternative solutions showed variable costs up to one million Dutch guilders per year. The investment for this project proved to be the best economical alternative to solve the chlorate and bromate emissions problem. 

Table 4.2 Major components of US high fructose syrap s variable production costs.

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) ... 

Equations (3.12) and (3.13) calculate the costs caused by transferring production of a product to another plant (scale-up). These costs are incurred in the form of expatriates, trainings, etc. The costs of production trials are contained in the variable production costs of the site via equations (3.22/3.23) and (3.40/3.41). 

Indeed, let us take the example of a French inland area protected by transportation costs where no foreign firm is cost-competitive enough to be part of the equilibrium in this area. Demand is linear P = a - b-Q. The N identical French firms, with an extended variable production cost ec,... 

Let us now assume that N firms in a given foreign country, with a variable production cost c and a transportation cost tc, are cost-competitive enough to be part of the equilibrium on the... 

We label as extended variable production cost , or simply extended cost , the cost with which firms compete on world cement markets, minus transportation costs, expressed in euros per tonne of cement. This determines the cost-competitiveness of firms. 

Extended cost = variable production cost + C02 opportunity cost... 

We observe in Figure 2 that, according to CEMSIM-GEO, technical flexibility allows EU producers to decrease their unitary emission to 90% of their 2004 unitary emission for 20/tCOr It guarantees that the amount of output-based allowances allocated covers their emissions they are neither buyers nor sellers on the C02 market, and their extended cost simply equals their variable production cost. 

Whereas firms buy some emission allowances for lower C02 prices, from 30/tCO2, the average unitary emission in the EU is lower than the amount of allowances allocated per tonne of cement. Cement manufacturers become sellers on the C02 market, which supposes that there are buyers such as the power suppliers. Therefore, although the EU variable production cost rises, its extended cost slightly decreases. 

However, if the margin over the extended cost tends to decrease, the margin over the variable production cost increases. 

As shown previously, the extended cost of EU firms under OB-90% is not significantly impacted. Figure 4 shows, unsurprisingly, that the EU domestic price demonstrates the same evolution. However, if the margin over the extended cost remains quasi-constant, the margin over the variable production cost decreases slightly because the latter increases. 

To sum up, the EU domestic price and the margin over the variable production cost increase very significantly under GF. Under OB, for output-based allocation over 75% of 2004 unitary emission, they are weakly impacted. 

Under GF, EU firms see their production decreasing and their margin over variable production costs increasing with C02 prices. These facts have opposite effects on their EBITDA from cement sales, the EBITDA on cement. 

Economics Variable production cost is dominated by feedstock pricing, especially for natural gas. The installed plant cost is the other main contributor to the total product cost. Total energy usage for a self-contained plant is typically around 7.8 Gcal/ton of methanol (31 MMBtu/ton) on an LHV basis. Capital investment varies tremendously with size and location however, a guideline installed cost for a 3,000-tpd plant is approximately U.S. 250-300 million. Synetix s LCM process offers improved economics over conventional processes. It is ideal for large capacities (over 3,000 tpd) where conventional plants cannot be used, such as, offshore production. 

The cash cost of production (CCOP) is the sum of the fixed and variable production costs ... 

Variable production costs such as utilities, power, operating supplies, and operating labor are assumed proportional to unit throughput W and equal to PC/L. 

The variable costs on an annual basis VC are related to q, the total amount of Delos produced, by means of reactor design analysis. For the process being considered there are two components of the variable cost raw material costs and variable production costs. 

For a specific reactor design, parameter B is constant. Raw material costs increase faster than q when q/B >0.1. This is caused by increased feed rate W and increased unconverted Algol in the effluent. The variable production cost can also be expressed in terms of the annual Delos production q ... 

Due to the recent price hike of naphtha, the economic preference is presently in the order to coal and petrocoke in the first place, LPG and LNG in the second place and naphtha in the third place in terms of the variable production cost. 

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