Average cost over peoriod of time

Assignment Help Business Management
Reference no: EM1333540

Recommend whether to locate a second production plant that considers operations costs for each facility and if the capacity to be added at a new plant in one of two cities (Milan or Zurich) is sufficient.

Based on land lease, utilities, labor etc. the Milan facility is estimated to have cost of $1250 per thousand cases of candy per month (for a capacity of 1500 thousand per month), whereas Zurich (capacity 1250 thousand per month) is at $1130 per thousand cases per month. Raw materials costs have to be added. The following data is for the past 5 years and shows the probability for raw materials costs per 1000 cases produced. What would be the average cost of raw materials for the next five years? Round to an integer.

Add this cost to the base cost to determine expected per month per 1000 cases cost for each facility.

Cost per 1000

cases of candy

produced,

per month Probability

$180 0.08

$200 0.12

$220 0.25

$240 0.2

$260 0.2

$280 0.15

Reference no: EM1333540

Questions Cloud

Role of decision making in a supervisor-s job : When is it better to use an individual approach vs. a group approach when making decisions? Explain the role of decision making in a supervisor's job.
Explain for your compfort fyc industry analysis : Explain For Your Compfort FYC Industry Analysis
Individual tax system : How may this influence how you would design an individual tax system?
Define the layers of the international organization : The layers of the International Organization for Standardization-Open Systems Interconnection (ISO-OSI) model.
Average cost over peoriod of time : Average cost over peoriod of time.
Give snmp help to monitor a network : What are some of the factors other then network itself that can cause the network to seem slow.
Prosecutor forbes exercises : After the jury verdict is announced, Prosecutor Forbes is questioned by the local media concerning his exercise of the peremptory challenges.
Debt financing and long term expenditures : You're the controller of a firm whose CEO believes which debt must always be employed to finance long-term expenditures because interest is tax deductible and debt does not dilute ownership.
The business strategy and the organizational culture : Discuss the relationship between the business strategy and the organizational culture regarding staffing decisions?

Reviews

Write a Review

Business Management Questions & Answers

  Describing entrepreneurial forms

Describe each of the following forms and address advantages and disadvantage of each: What is the most appropriate form of ownership for aggressive entrepreneurial firm?

  Factors observed while defining the size of team

Detail a factor that needs to be critically observed while defining the size of a team.

  Shareholder return and ethics

What does it mean to say that managers should maximize shareholder wealth subject to ethical constraints? What ethical considerations may enter in a decision that decreases cash flow or stock price?

  Reservations for offsite training

Cramtrack, the regional commuter train system, is trying to train users of its newly installed computer system. For the users to get the proper training, the systems analysts involved with the project sent a memo to the heads of the four departmen..

  Ethical decision making and cases

Explain the three criteria which should be met in order to define the hostile work environment.

  Implementing change at the leadership level

Who best implements change at the leadership level? Is it up to Organizational Development to point out the need for change? Or is it best initiated by the leaders themselves?

  Counter-argument to training leaders

A third possibility is that, even if certain theories could actually guide individuals in leadership situations and even if individuals could alter their style. What is your reaction to these arguments?

  Benefits and challenges while working in group

What were some benefits and challenges you faced while working in this group?

  Describing theory of interest and decision-making concept

Describe the theory of interest and discuss the decision-making concept it applies to in analyzing cost and return on long-term investment.

  Business ethics of the national enquirer company

Business Ethics: The National Enquirer, Inc., is a Florida corporation with its principal place of business in Florida. It publishes the National Enquirer, a national weekly newspaper with a total circulation of more than 5 million copies.

  Differentiating managerial role and the leadership role

Discuss the differences between the managerial role and the leadership role.

  Project of organizing company offsite

You have been tasked with the project of organizing a company offsite 2-day training session in which people are brought in from different parts of the country.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd