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A residue costs \( 400 \) per tonne to collect and process and yields product worth \( 950 \) per tonne. The margin per tonne is

  • A.350
  • B.550
  • C.1350
  • D.0.42

Answer: B

Correct answer: 550

The margin is simply the difference between value and cost:

\[ 950 - 400 = 550\ \mathrm{per\ tonne} \]

This is the calculation that decides whether a by-product route is pursued at all. The collection and processing figure is where most schemes fail, since residues are bulky and often scattered - and a route that is comfortably profitable for material arising at a mill may lose money on the same material gathered from fields.

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