Cost Analysis Report Assignment

Cost Analysis Report Assignment
Competency

Elasticity, consumer choice, utility, productivity, and nature of costs.

Course Scenario

Oil Company X is a large oil refinery which has been expanding and taking on new investment projects. Recently, they have considered building a pipeline that stretches across the United States, from Canada to New Orleans.

You are a member of the Cost Department. At a recent meeting of the board of directors, it was estimated that the cost of building the pipeline would be two million dollars in total for the production of a 30,000-mile stretch, $5,000 of which is a fixed cost in taxes. They also want you to determine if the currently available alternative energy source is a strong substitute good for oil, which may interfere with expected profits from this venture.

Instructions

As a cost analyst at your firm, you are asked to evaluate the marginal cost of producing the pipeline per 1,000-mile stretch as well as the average total cost of producing the pipeline per 1,000 miles. Submit a 2-page report detailing the cost. Include calculations in your Word document.

You will also include a table showing the final figures for the following costs:

Total Fixed Cost
Total Variable Cost
Average Variable Cost
Average Fixed Cost
Marginal Cost
Please use this included Excel Cost Spreadsheet to calculate your costs.

Be sure to also include a calculation of the cross-price elasticity of the alternative energy source and oil. Assume the current price of oil is $50/gallon. If the price increases to $55/gallon of crude oil, the quantity demanded of the alternative energy source increases by 20%.

Is this a complementary good, a substitute good, or a non-related good? If there is a relationship, indicate whether the relationship is weak or strong. Justify your answer with an explanation.

Format your proposal to include a title page, introduction, conclusion, and references. Include all relevant graphs, equations, and calculations. Show your work on calculations to ensure you receive partial credit for incorrect answers. No credit will be given if your work is not shown. Remember to cite your sources using correct APA format, and also use correct grammar, spelling, and formatting.

The spreadsheet for the assignment is attached file.

Sheet1

Quantity (miles of pipeline)	Total Cost	Total Fixed Cost	Total Variable Cost	Average Fixed Cost	Average Variable Cost	Marginal Cost
0	$ 5,000	$ 5,000
1,000	$ 11,573
2,000	$ 18,208
3,000	$ 29,267
4,000	$ 44,750
5,000	$ 64,657
6,000	$ 88,987
7,000	$ 117,740
8,000	$ 150,918
9,000	$ 188,518
10,000	$ 230,543
11,000	$ 276,991
12,000	$ 327,863
13,000	$ 383,159
14,000	$ 442,878
15,000	$ 507,021
16,000	$ 575,587
17,000	$ 648,577
18,000	$ 725,991
19,000	$ 807,828
20,000	$ 894,089
21,000	$ 984,774
22,000	$ 1,079,882
23,000	$ 1,179,414
24,000	$ 1,283,370
25,000	$ 1,391,749
26,000	$ 1,504,552
27,000	$ 1,621,778
28,000	$ 1,743,429
29,000	$ 1,869,502
30,000	$ 2,000,000

&”Helvetica,Regular”&12&K000000&P

The post Cost Analysis Report Assignment appeared first on EssayGuru Pro.

Write my Essay. Premium essay writing services is the ideal place for homework help or essay writing service. if you are looking for affordable, high quality & non-plagiarized papers, click on the button below to place your order. Provide us with the instructions and one of our writers will deliver a unique, no plagiarism, and professional paper.

Get help with your toughest assignments and get them solved by a Reliable Custom Papers Writing Company. Save time, money and get quality papers. Buying an excellent plagiarism-free paper is a piece of cake!

All our papers are written from scratch. We can cover any assignment/essay in your field of study.