Reference no: EM133519414

Assignment:

Defines design capacity and effective capacity.

Describes some of the main assumptions of break-even analysis and explains its relevant calculations.

Defines net present value and explains some of the reasons for using net present value as a tool to compare possible investments.

Jane Doe at Smithson Cutting, Inc. ("SC") is opening a new line of scisors for supermarket distribution. She estimates that fixed costs will be $500 and variable costs will be $0.50 per unit. Selling price will be $0.75 per unit on average.

• Calculates and discusses SC's break-even point in units and in dollars.

The initial cost of a capacity investment at ABC Electronics Inc. ("ABC"), of Richmond in BC, is $65,000 and the cost of capital is 10%. John Doe, VP for operations, expects a return of $16,000 per year for eight years.

• Calculates and discusses the net present value (NPV) of the capacity investment at ABC.
• Explains how embedding sustainability contributed to GOJO's bottom line in the past.
• Discusses how GOJO's business strategy allowed it to make a greater social or environmental impact.
• Analyzes and explains the value of stakeholder input and collaboration as opposed to a more narrow growth and profit focus.
• Identifies, describes, and appraises two (2) examples of sustainability initiatives at GOJO with respect to Innovation (p. 22-41) and/or Public Health and Well-Being (p. 35-46) .
• Explains the implications of these two (2) examples of sustainability initiatives at GOJO with respect GOJO's operations.