The Tri-County Generation and Transmission Association is a nonprofit cooperative organization that provides electrical service to rural customers. Based on a faulty long-range demand forecast, Tri-County overbuilt its generation and distribution system. Tri-County now has much more capacity than it needs to serve its customers. Fixed costs, mostly debt service on investment in plant and equipment, are $82.5 million per year. Variable costs, mostly fossil fuel costs, are $25 per megawatt-hour (MWh, or million watts of power used for one hour). The new person in charge of demand forecasting prepared a short-range forecast for use in next year’s budgeting process. That forecast calls for Tri-County customers to consume 1 million MWh of energy next year.
a. How much will Tri-County need to charge its customers per MWh to break even next year?
b. The Tri-County customers balk at that price and conserve electrical energy. Only 95 percent of forecasted demand materializes. What is the resulting surplus or loss for this nonprofit organization?
5. Identify at least three forces that shape businesses and Society, and explain them briefly.Apr 26 2021
There will be strong crowding out ifA. the demand for real money is totally unresponsive to changes inreal GDP.B. the demand for real money is totally unresponsive to cha...Jun 01 2018
1. Select 10 stocks: 5 dividend paying stocks and 5 non-dividend paying stocks. 2. Calculate their Values 3. Determine if Over-, Under-, or Fair Value 4. As a whole provi...Nov 23 2019
te/displayLearningUnit?course id=23444_18.content id=971868 1 Which of the following statements is CORRECT? While the distinctions are blurring, investment banks generall...Aug 19 2020
You plan on saving $5,000 per year for the next 45 years for your retirement account. How much will you have at retirement if you can earn 7 percent on your investment?$2...May 22 2018
According to supply-side fiscal policy, reducing tax rates on wages and profits will:a. create demand-pull inflation.b. lower the price level but may trigger a recession....May 12 2021
The bell crank, which is in equilibrium under the forces shown in the figure, is supported by a 20-mm-diameter pin at D that is in double shear. Determine The required di...May 16 2020
Draw the shear and moment diagrams for the shaft if it is subjected to the vertical loadings of the belt, gear, and flywheel. The bearings at A and B exert only vertica...May 16 2020
On January 1, 2014, Hardy, Inc., purchased certain plant assets under a deferred payment contract. The agreement called for making annual payments of $10,000 for five yea...May 24 2020
Problem 7-11 Aging of accounts receivable [LO4]Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 2013...May 17 2020