Homework Answers
a) Figures in MM
| Year | Sales volume (lb) in MM | Sale price per lb | Total sales value |
| 2022 | 20.0 | 8.0 | $ 160 |
| 2023 | 21.2 | 7.8 | $ 165 |
| 2024 | 22.5 | 7.5 | $ 169 |
| 2025 | 23.8 | 7.3 | $ 174 |
| 2026 | 25.2 | 7.1 | $ 179 |
| 2027 | 26.8 | 6.9 | $ 184 |
| 2028 | 28.4 | 6.7 | $ 189 |
| 2029 | 30.1 | 6.5 | $ 194 |
| 2030 | 31.9 | 6.3 | $ 200 |
| 2031 | 33.8 | 6.1 | $ 206 |
| 2032 | 35.8 | 5.9 | $ 211 |
| 2033 | 38.0 | 5.7 | $ 217 |
| 2034 | 40.2 | 5.6 | $ 223 |
| 2035 | 42.7 | 5.4 | $ 230 |
| 2036 | 45.2 | 5.2 | $ 236 |
| 2037 | 47.9 | 5.1 | $ 243 |
| 2038 | 50.8 | 4.9 | $ 250 |
| 2039 | 53.9 | 4.8 | $ 257 |
| 2040 | 57.1 | 4.6 | $ 264 |
| 2041 | 60.5 | 4.5 | $ 271 |
| 2042 | 64.1 | 4.4 | $ 279 |
b)
| Year | Sales volume (lb) in MM | Capacity | % of capacity | Plant Cost in MM | Other contingencies | Working capital |
| 2020 | - | $ 4.2 | $ 6.0 | $ 1.8 | ||
| 2021 | - | $ 1.8 | ||||
| 2022 | 20.0 | 10.5 | ||||
| 2023 | 21.2 | 19.5 | ||||
| 2024 | 22.5 | 30 | 75% | |||
| 2025 | 23.8 | 30 | 79% | |||
| 2026 | 25.2 | 30 | 84% | |||
| 2027 | 26.8 | 30 | 89% | |||
| 2028 | 28.4 | 30 | 95% | $ 4.2 | ||
| 2029 | 30.1 | 30 | 100% | $ 1.8 | ||
| 2030 | 31.9 | 40.5 | 79% | |||
| 2031 | 33.8 | 49.5 | 68% | |||
| 2032 | 35.8 | 60 | 60% | |||
| 2033 | 38.0 | 60 | 63% | |||
| 2034 | 40.2 | 60 | 67% | |||
| 2035 | 42.7 | 60 | 71% | |||
| 2036 | 45.2 | 60 | 75% | |||
| 2037 | 47.9 | 60 | 80% | |||
| 2038 | 50.8 | 60 | 85% | |||
| 2039 | 53.9 | 60 | 90% | |||
| 2040 | 57.1 | 60 | 95% | $ 4.2 | ||
| 2041 | 60.5 | 60 | 101% | $ 1.8 | ||
| 2042 | 64.1 | 70.5 | 91% |
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