Cost of the spice ingredients per batch to make worth while

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Reference no: EM131247015

Currently, a small BBQ sauce company buys their spices in pre-made packages that go into each batch. They buy about 980 packages per year and they don't see that changing significantly. They pay $98.50 per package. The engineering department thinks they should install equipment and get spices in bulk bags and make their own mix. They can save money on the ingredients when they buy in bulk. The equipment to store and mix the spices will cost $168,000 and will take some production labor costing $30,000 per year and maintenance/electricity of $5,000 per year. If the project has a 6 year life and the company MARR is 12%, what is the required cost of the spice ingredients per batch to make this worth while? in excel please

Reference no: EM131247015

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Cost of the spice ingredients per batch to make worth while : Currently, a small BBQ sauce company buys their spices in pre-made packages that go into each batch. They buy about 980 packages per year and they don't see that changing significantly. They pay $98.50 per package. The engineering department thinks t..

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