Small manufacturing plant that makes fishing lures

Assignment Help Operation Management

Reference no: EM13960818

You are thinking of buying a small manufacturing plant that makes fishing lures. The purchase price for the plant is 15 million. Fixed costs of running the plant are 800,000 per year. The variable cost per lured produced is .45. The scrap rate is 5%. The lures sell for 3 each. You're evaluating the plant over an 8-year horizon. You'll finance the whole thing with a commercial bank loan having a 10% RATE. HOW MANY LURES WOULD YOU NEED TO MAKE EACH YEAR TO BREAKEVEN OVER THE 8 YEARS?

Reference no: EM13960818

Questions Cloud

Forgery-embezzlement-larceny by trick and false pretences : An employee worked as a third-shift supervisor at a manufacturing plant. One of his duties was to ensure that all timekeeping records accurately reflected the time his crew actually worked. Workers, including the employee, were then paid for whatever..

Revising hiring criteria for public transportation workers : The New City council recently passed an ordinance revising the hiring criteria for public transportation workers. The criteria apply to those who operate and maintain public transportation equipment, but not to those on the City’s Public Transportati..

Define what is a meta analysis : Chatburn describes a quantitative method of research known as a meta analysis. In your own words, define what a meta analysis is and what differentiates this design for other quantitative studies

What length will you choose for wire : Express your answer to two significant figures and include the appropriate units.

Small manufacturing plant that makes fishing lures : You are thinking of buying a small manufacturing plant that makes fishing lures. The purchase price for the plant is 15 million. Fixed costs of running the plant are 800,000 per year. The variable cost per lured produced is .45.

Advantages experienced by american computer manufacturers : What were the good, the bad, and the ugly points of their posts as the post relates to the consumer, the company that outsources, and the company that conducts the outsourcing?

Face-to-face situation as compared with online arrangement : What contrasts can be made as to whether an offer and acceptance have been made in a face-to-face situation as compared with an online arrangement?

Advantages and disadvantages of cloud computing : You are the IT director for XYZ Manufacturing. Your company is a B2B (business-to-business) organization that supplies auto parts to General Motors. There are 200 employees at XYZ Manufacturing with a headquarters in Detroit, Michigan, and field o..

Grievant reported to work more than hour after commencement : The grievant reported to work more than an hour after commencement of his shift. He informed his supervisor that he had stopped by the residence of a friend the night before to watch a basketball game and had overslept, making him late for work. The ..

User Account

All Pages