A) Investment Initial Cost 1 annual 6000
Initial Cost in 2 annual 2000
Annual savings 1200
Initial Cost/ Annual
Payback Savings 7
Year 1 2 3 4 5
Investment -6000 -2000
Savings 1200 1200 1200 1200 1200
-4800 -800 1200 1200 1200
Income over
the years -4800 -5600 -4400 -3200 -2000
B) Investment Initial Cost 1 annual 6000
Initial Cost in 2 annual 2000
Annual savings 1200
Opportunity cost 5.50%
Year 1 2 3 4 5
Investment -6000 -2000
Savings 1200 1200 1200 1200 1200
-4800 -800 1200 1200 1200
Income over
the years -4800 -5600 -4400 -3200 -2000
NPV S/1,561.04
IRR 11.18%
6 7 8 9 10
1200 1200 1200 1200 1200
1200 1200 1200 1200 1200
-800 400 1600 2800 4000
6 7 8 9 10
1200 1200 1200 1200 1200
1200 1200 1200 1200 1200
-800 400 1600 2800 4000
A B C D
Fixed cost 180000 255000 400000 280000
Variable 38 22 15 28
=FC+v*Q
Q A B C D
1000 218000 277000 415000 308000
2000 256000 299000 430000 336000
3000 294000 321000 445000 364000
4000 332000 343000 460000 392000
5000 370000 365000 475000 420000
6000 408000 387000 490000 448000
7000 446000 409000 505000 476000
8000 484000 431000 520000 504000
9000 522000 453000 535000 532000
10000 560000 475000 550000 560000
11000 598000 497000 565000 588000
12000 636000 519000 580000 616000
13000 674000 541000 595000 644000
14000 712000 563000 610000 672000
15000 750000 585000 625000 700000
16000 788000 607000 640000 728000
17000 826000 629000 655000 756000
18000 864000 651000 670000 784000
19000 902000 673000 685000 812000
20000 940000 695000 700000 840000
A. Please calculate the ranges at which each plant is more economic, show the graph
From 0 to 4000 units produced, plant A is the most economic plant, but after the quantity grows, plant B should
be the selected one because by the time Q reaches to 10000, plant B has the lower costs.
B. Please calculate the ranges at which each plant is more profitable, show the graph
As shown below, the optimum profit when Q equals 12000, is 21000, generated in plant B. As it was shown on
question A, from 0 to 4000 units produced, plant A is the most profitable, until the quantity increases to 10000,
where plant B becomes the solution.
=Q* (R-v)-FC
Q A B C D
1000 -173000 -232000 -370000 -263000
2000 -166000 -209000 -340000 -246000
3000 -159000 -186000 -310000 -229000
4000 -152000 -163000 -280000 -212000
5000 -145000 -140000 -250000 -195000
6000 -138000 -117000 -220000 -178000
7000 -131000 -94000 -190000 -161000
8000 -124000 -71000 -160000 -144000
9000 -117000 -48000 -130000 -127000
10000 -110000 -25000 -100000 -110000
11000 -103000 -2000 -70000 -93000
12000 -96000 21000 -40000 -76000
13000 -89000 44000 -10000 -59000
14000 -82000 67000 20000 -42000
15000 -75000 90000 50000 -25000
16000 -68000 113000 80000 -8000
17000 -61000 136000 110000 9000
18000 -54000 159000 140000 26000
19000 -47000 182000 170000 43000
20000 -40000 205000 200000 60000
Total Cost
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
A B C D
Q 15000
Product Price is 45
nomic, show the graph
c plant, but after the quantity grows, plant B should
0, plant B has the lower costs.
table, show the graph
, is 21000, generated in plant B. As it was shown on
most profitable, until the quantity increases to 10000,
es the solution.
Total Profit
300000
200000
100000
0
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
-100000
-200000
-300000
-400000
A B C D
18000 20000
0 16000 18000 20000
A. We have 4 alternatives and their coordinates. If there were no weights what would be the center of gravity
What would be the Weighted Center of Gravity
Location x y w
D1 3 5 5
D2 5 4 4
D3 7 10 13
D4 8 5 23
CG 5.75 6 45
WCG 6.888888889 6.355555556
Show the graph
B If point D5 = (2,2) is a hot point that you want to keep away from, how would you put it on the table? What wight would yo
Location x y w
D1 3 5 5 I would put it a negative weight,
D2 5 4 4
D3 7 10 13
D4 8 5 23
D5 2 2 -10
CG 5 5.2 35
WCG 8.85714286 8.17142857
center of gravity
Centre of gravity
12
10
0
2 3 4 5 6 7 8 9
on the table? What wight would you use?
would put it a negative weight, 10 in this case to keep it away form the gravity centre
7 8 9
A department works two 8-hour shifts per day, 250 days a year and these are the figures for the usage of the machine being considered:
Annual processing
Product Processing time hrs/unit
Demand time
A 1500 2 3000 Hours 8
B 3000 1 3000 Days. 250
C 4500 2 9000 2000
15000
Please calculate the units of capacity needed.
You may do it here or in an excel and drop it here as your answer.
units of
hr/year annual demand capacity
A 4000 1500 7500
B 4000 3000 15000
C 4000 4500 7500
Nª machines 8
hine being considered: