Quiz4_Spring09 - ~ k [ Jler i/ year. ' / ~ ~ l \ / I I { _...

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CHEE 5369 / 6369 Quiz # 4 (Closed book) Tuesday February 17, 2009 A chemical plant has a capacity for producing one million kg of a product per year. It is found out that only 500,000 kg of product can be sold per year . The fIxed costs are 35% and the variable costs are 40% of the total product cost when the plant is running 100% of capacity . The remaining 25% of the total cost are proportional to the square of the production rate. Determine the % change in the total product cost (TPC) when the production rate is reduced from one million to half a milliO
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This note was uploaded on 04/13/2011 for the course CHEE 5369 taught by Professor Alim during the Spring '11 term at University of Houston.

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