How much profit do you make on each wafer of woods chip

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Reference no: EM13693758

Question: It costs $1 billion to build a new fabrication facility. You will be selling a range of chips from that factory, and you need to decide how much capacity to dedicate teach chip. Your Woods chip will be 150 mm2 and will make a profit of $20 per defect-free chip. Your Mark on chip will be 250 mm2 and will make a profit of $25 per defect-free chip. Your fabrication facility will be identical to that for the Power5. Each wafer has a 300 mm diameter.

Part 1) How much profit do you make on each wafer of Woods chip?

Part 2) How much profit do you make on each wafer of Mark on chip?

Part 3) Which chip should you produce in this facility?

Part 4) If your demand is 50,000 Woods chips per month and 25,000 Mark on chips per month, and your facility can fabricate 150 wafers a month, how many wafers should you make of each chip?

Solve these parts in details and provide examples to support your rationale.

Reference no: EM13693758

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