Question 29 k Previous Next > The plant upgrade option that reduces production r

Question

Question 29 k Previous Next > The plant upgrade option that reduces production run setup costs by 50% each year and costs $8 million per million pairs of plant capacity (which causes depreciation costs at the plant to rise by 5% of the capital cost of the upgrade) merits careful consideration by company managers when O they are committed to a long-term strategy of producing branded footwear with an S/Q rating of 7-stars or higher at all of the company's plants O the company builds a 3 million-pair plant in Europe-Africa in Year 16 and managers expect to produce either 100 or 150 models/styles at the plant in Year 17 through Year 20 (annual production run setup costs are S2.5 million for 100 models and $4 million for 150 models) the company plans to close the North American plant as soon as it completes the expansion of its plant in the Asia-Pacific to 8 million pairs (no later than Year 14) and when management expects to produce 50 modeis/istyles at this plant through Year 20 (production run setup costs for o they are committed to keeping the company's 2-million pair plant in North America open for the long-term and the company's strategy calls for this plant to produce 500 models/styles (which 50 models/styles are $1 million per year) entails annual production run setup costs of $12 5 million) every year through Year 20 O they are committed to a long term strategy to reduce manufacturing costs per pair produced at each of the company's plants to as low a level as possible-lowering the costs for production run setup each year helps achieve this strategic objective Copying redistributing or website posting is expressly prohibited and constitutes copyright violation, Copyright 92018 by Glo-Bus Software Inc. Next> evious

Explanation / Answer

Question:- the plant upgrade option that reduces production run setup costs by 50 each year and costs 8 million per million pairs of plant capacity( which causes depreciation costs at the plant to rise by 5% of the capital cost of the upgrade) merits careful consideration by company managers when

Answer:- the company builds a 3 million pair plant in Europe Africa in year 16 and managers expect to produce either 100 or 150 models/styles at the plant in year 17 through year 20 (annual roduction run set up costs are $2.5 million for 100 models and $4 million for 150 models)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.