A process has been designed to produce a new product P. Based on your design calculations, the FCI of the process is estimated to be $500 MM. The useful life period of the process is taken to be 10 years. The salvage value of the process is assumed to be 10% of the FCI. Other fixed charges for the process (property taxes, insurance, salaries, etc.) are $30 MM/year. The maximum production capacity of the process is 300,000 tonne/year of product P. The operating cost of the process is $250/tonne. It is desired to break even at a production rate of 33.3% of the maximum process capacity. What should be the selling price of the product?+

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.