Sala Pipe Fittings Produce Pipe Elbows and Reducers from Stainless

question 28

Essay

Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up to 20 000 tonnes of stainless steel sheets in a year. The company pays the steel company $800 per tonne of stainless steel sheets and each tonne is used to manufacture $2000 worth of elbows and reducers. Variable processing costs are $470 per tonne and fixed processing costs $3.4 million per year at all production levels. Administrative overhead is $3 million per year regardless of the volume of the production. Marketing and transportation costs work out to be $230 per tonne. In order to attain a net income of $2.4 million how many tonnes of steel must be processed this year?

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Communication that follows established protocols and structures, often within organizational settings, such as reports or official meetings.

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Pertaining to processes or systems that operate via electronic devices or the internet.

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The process of changing the perspective or interpretation of a situation or concept to view it in a different light or context.