Offshore Petroleum's Fixed Costs Are $2,500,000 and Its Debt Repayment

question 16

Essay

Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000.Selling price per barrel of oil is $18 and variable costs per barrel are $10.
(a) Determine the breakeven output (in dollars).
(b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a target (operating) profit of $1,500,000.
(c) Determine the degree of operating leverage at an output of 400,000 barrels.
(d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.

Grasp the foundational knowledge of thermoregulation in animals, including humans.

Recognize the role of hypothalamus in thermoregulation.

Describe the physiological adaptations to environmental temperature changes.

Explain the biological significance of brown fat in thermogenesis.

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Definitions:

Alteration Minerals

Minerals that form as a result of chemical changes in rocks, often due to hydrothermal fluid activity.

Iron Ore

A natural mineral or rock from which iron can be profitably extracted, typically rich in iron oxides.

Caldera

A large volcanic crater typically formed by a major eruption leading to the collapse of the mouth of the volcano.

Metal-Rich Fluids

Liquids that contain high concentrations of metals, often found in geological settings where they can deposit valuable ore minerals.