d it yields 50oz of bronze and 3,000ozof platinum each day. The Horseshoe Mine costs $16,000/day to operate, and ityields 75ozof bronze and 1,000oz of platinum each day. Company management has set a target of at lea
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The Perth Mining Co. operates 2 mines for the purpose of extricating bronze and platinum. The Saddle Mine costs $14,000/day to operate, and it yields 50oz of bronze and 3,000ozof platinum each day. The Horseshoe Mine costs $16,000/day to operate, and ityields 75ozof bronze and 1,000oz of platinum each day. Company management has set a target of at least 650oz of bronze and 18,000oz of platinum. How many days should each mine be operated so that the target can be met at a minimum cost? What is the minimum cost?
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- Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $71,000 per ton, one-fourth of which is allocated to product X15. Six thousand five hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8,800 and then sold for $22 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should beWexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $63,000 per ton, one-fourth of which is allocated to product X15. Six thousand eight hundred units of product X15 are produced from each ton of clypton. The units can be either sold at the split-off point for $16 each or processed further at a total cost of $6,100 and then sold for $21 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 1. 2. Product X15 should beBriggs Excavation Company is planning an investment of $108,600 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for six years. Customers will be charged $105 per hour for bulldozer work. The bulldozer operator costs $34 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $20,000. The bulldozer uses fuel that is expected to cost $45 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Question Content Area a. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to…