50.1K

Verified Solution

Link Copied!

We operate a factory that exclusively produces steel pipes.

The spreadsheet $($ATTACHED AS AN IMAGE$)$ contains comprehensive monthly data on the pipes produced in $2021$ and $2022.$ Please copy the data into your own spreadsheet for calculations. Note that the numbers are entirely fictional and do not reflect real$-$world figures or trends.

For each month, the spreadsheet lists all factory costs, which are categorized into three areas for simplicity:

$$ Cost of raw materials $($steel$)$

$$ Cost of energy to run the factory

$$ Other costs, including personnel, etc.

Additionally, the spreadsheet provides the revenue generated by the sales of pipes that were produced in a given month and sold by the end of $2022.$

Here's some additional information:

$$ During this period, the factory produced two types of pipes: type A and type B$,$ but only one type at a time: Sometime in $2021,$ the factory switched from type A to type B$.$ Type B is slightly larger and was expected to have a greater market appeal.

$$ Steel is purchased in large lots, and the cost per kilogram is based on these bulk purchases. The production of pipes uses all the steel in a lot until it's exhausted, and then it moves to the next lot. During the period, three lots were used, with the first one lasting for more than half the time.

$$ After being produced, pipes are all sold within a few months.

Question: Based on the information provided, what can we conclude with confidence about the $2021-22$ production? Select all that apply

$1)$ The cost per kilogram of the first lot of steel was higher than that of the second lot

$2)$ The effective cost of a kWh of energy reached its maximum in January $2022$

$3)$ The selling price of type A pipes has been constant across the period

$4)$ The selling price of type B pipes has been constant across the period

$5)$ In June $2021,$ most pipes produced were of type A

$6)$ The $2022$ production was unprofitable overall, even when accounting for the revenues expected from the pipes that have been produced but not yet sold

$7)$During the period, the production of type A pipes has been unprofitable

Answer & Explanation Solved by verified expert

See Answer