Cost Analysis Report

  
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:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

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.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
Fountain Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.