Exhibit 6-2
Sinclair Plastics Operates Two Chemical Plants Which Produce

question 2

Essay

Exhibit 6-2
Sinclair Plastics operates two chemical plants which produce polyethylene; the Ohio Valley plant which can produce up to 10,000 tons per month and the Lakeview plant which can produce up to 7,000 tons per month. Sinclair sells its polyethylene to three different auto manufacturing plants, Grand Rapids (demand = 3000 tons per month), Blue Ridge (demand = 5000 tons per month), and Sunset (demand = 4000 tons per month). The variable unit cost of shipping a ton is $1 per mile. The number of miles between the respective plants is shown in the table below:
In addition to the variable unit costs of shipping, Sinclair incurs a fixed handling cost (of pickup and delivery) for any shipping routes it uses. These costs are discounted for longer routes, as shown below:
$$\begin{array} { | l | l | l | l | } \hline & \text { Grand Rapids } & \text { Blue Ridge } & \text { Sunset } \\\hline \text { Ohio Valley } & 50 & 40 & 100 \\\hline \text { Lakeview } & 60 & 50 & 75 \\\hline\end{array}$$
$\begin{array}{c}\text { Fixed Cost Levels }\\\begin{array}{lll}\text { Distance (mi)}&\text { Fixed Cost } \\<=25 & \$ 100,000 \\<=50 & \$ 60,000 \\<=75 & \$ 20,000 \\<=100 & \$ 0\end{array}\end{array}$

-Refer to Exhibit 6-2.Suppose the shipping capacity for all routes is 3000 tons per month.What is Sinclair's optimal shipping plan in that case
What is the total cost in that case

Prepare consolidated income statement and retained earnings statement.

Compute the impact of land sales among consolidated entities and its effect on financial statements.

Calculate adjustments for inventory transactions between parent and subsidiary and their impact on consolidated financial statements.

Understand the amortization of intangible assets with definite useful lives and impairment testing.

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Definitions:

Client Excesses

Behaviors or actions by a client that go beyond what is considered normal or acceptable within the therapeutic setting, potentially hindering progress.

Client Deficits

Lacking essential skills, abilities, or resources that clients need in order to function effectively.

Helper

An individual who provides assistance, support, or facilitation in a therapeutic or service-oriented context.

Positive And Negative Affect

Refers to the dimension of emotional experience, where positive affect encompasses pleasant emotions and moods, and negative affect involves unpleasant emotions and moods.