Purchase Solution

Assistance with average cost over period of time.

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

The expert provides the assistance with average cost over periods of time.

Solution Preview

To be able to compute the average cost of raw materials for the next five years, you need to multiply the cost per 1000 cases of candy produced with ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Introduction to Finance

This quiz test introductory finance topics.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media