Question

Question Help Southem Env allowing SEC charges its clients the growth of the business, Emergency lConsulting (SEC), Inc. designs plans and specifications for asbestos abatement (removal) projects in public, private, and government buildings. Currently, SEC omenta t before the occu $100 more than the subcontractor's emoved SEC subcontracts air-test samples to a laboratory for analysis by transmission electron microscopy (TEM) To offeot the onst of TEM r and the labor involved in shipping the samples. With SEC must consider either o subcontract the TEM stem are the costs of shipping the air-test samples to the subcontracton continuing laboratory. Because of the passage of the Asbestos Hazard nown to be 15 % . Response Act (AHERA) by the U.S. Congress, SEC expects about 1,000 - sample tests per year over eight vears The firm's MARD i Click the icon to view the description of alternatives. Click the icon to view the interest factors for discrete compounding wher MARR 15% per year (a) Determine the cost of an air-sample test by the TEM laboratory (in-house). The unit cost is $(Round to the nearest cent.) Subcontract option. The client is charged $400 per sample, which is $100 above the subcontracting fee of $300. Labor expenses are $1,500 per year, and shipping expenses are estimated to be $0.50 per sample. TEM purchase option. The purchase and installation cost for the TEM is $415,000. The equipment would last for eight years, at which time it would have no salvage value. The design and renovation cost is estimated to be $9,500 and it is paid only once along with the installation cost. The client is charged $300 per sample based on the current market price. One full-time manager and two part-time technicians are needed to operate the laboratory. Their combined annual salaries will be $50,000. Material required to operate the lab includes carbon rods copper grids, filter equipment, and acetone. The costs of these materials are estimated at $6,000 per year. Utility costs, operating and maintenance costs, and the indirect labor needed to maintain the lab are estimated at $18,000 per year. The extra income-tax expenses would be $20,000. Print Done Question Help Southern Environmental Consulting (SEC), Inc. designs plans and specifications t asbestos abatement t(removal) ovenment buildings. Currently SEC must conduct a air test before SEC charges its clients $100 sbestos has been removed. SEC subcontracts air-test samples to a laboratcoy for a cst of TEM analysis. ples. With sd the growth of the business, SEC must consider either continuipg t in this system are the costs Emergency Response Act (AHERA) by the U.S. Congress, SEC expects about 1,000 air-sample tests per vear over shipping the air-test samples to the suboontractor and the labor inun ng lts own TEM laboratory: firm's MARR is known to be Because of the passage of the Asbestos Hazard ib 150% E Click the icon to view the description of alternatives. Click the icon to view the interest factors for discrete compounding when MARR 15 % per year . (a) Determine the cost of an air-sample test by the TEM laboratory (in-house). The unit cost is S(Round to the nearest cent.)

Answer 1

a. Computation of Unit Cost

Annual Equivalent Worth = Initial Investment * PVF (0.15,8) + 50000 + 6000 + 18000 + 20000

Annual Equivalent Worth = (9500 + 415000) * PVF (0.15,8) + 50000 + 6000 + 18000 + 20000

Annual Equivalent Worth = 424500 * 0.2229 + 94000

Annual Equivalent Worth = 188621.1

Unit Cost = Annual Equivalent Worth / 1000Samples

Unit Cost = 188621.1 / 1000 Samples

Unit Cost = 188.62