Questionyou are trying to figure out whether to build a new

Assignment Help Marketing Management

Reference no: EM13349424

Question

You are trying to figure out whether to build a new fabrication facility for your IBM Power5 chips. It costs $1 billion to construct a new fabrication facility. Benefit of a new fabrication is that you calculate that you will be able to sell 3 times as many chips at 2 times price of the old chips. An old chip had an area of 389 mm2, with a defect rate of 0.3 defects per cm2. A new chip will have an area of 186 mm2, with a defect rate of 0.7 defects per cm2. Suppose that the wafer has a diameter of 300 mm and that it costs $500 to fabricate a wafer in either technology. Imagine α=4 and that the wafer yield is 100 percent (as in no defective wafers are used and no test dies are included). You were before selling the chips for 40 percent more than their cost. For this problem you can just calculate the die cost and ignore the costs of testing and packaging the chips.

A. What is price of the old Power5 chip?

B. What is price of the new Power5 chip?

C. What was the profit on each old Power5 chip?

D. What is income on each new Power5 chip?

E. You used to sell 500,000 old Power5 chips per month, how long will it take to recoup costs of the new fabrication service?

Reference no: EM13349424

Questions Cloud

Question 1a define descriptive researchb what are the 5 : question 1a define descriptive researchb what are the 5 primary research methods in marketing research?c explain the

Question buffalo falls ltd manufactures among other things : question buffalo falls ltd manufactures among other things glass table tops. it uses a just-in-time system of

Question 1a give details of a variety of sources of : question 1a give details of a variety of sources of mauritian law.b express the internal aids to statutory

Question purpose a schedule that lists the components of : question purpose a schedule that lists the components of and evaluates the personal and dependent exemption amount

Questionyou are trying to figure out whether to build a new : questionyou are trying to figure out whether to build a new fabrication facility for your ibm power5 chips. it costs 1

Question kjj corp was formed on october 10 1997 by kimberly : question kjj corp. was formed on october 10 1997 by kimberly jen 123-45-6789 jennifer james 234-56-7890 and james kim

Question 1i give explanation that how risk management : question 1i give explanation that how risk management protect and adds value to the organization and its stakeholders

Questionwhen writing computer programs programmers often : questionwhen writing computer programs programmers often have to create repeated actions. java looping structures

Question 1i give a broad definition of an insurance : question 1i give a broad definition of an insurance contract.ii acquiring appropriate insurance cover is necessary part

User Account

All Pages