Square feet of production space

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NutriStar produces a line of vitamins and nutritional supplements. It recently introduced its Nutri-Sports Energy Bar, which is based on new scientific findings about the proper balance of macronutrients. The energy bar has become extremely popular among elite athletes and other people who follow the diet. One distinguishing feature of the Nutri-Sports Energy Bar is that each bar contains 50 milligrams of eicosapentaenoic acid (EPA), a substance strongly linked to reducing the risk of cancer but found in only a few foods, such as salmon. NutriStar was able to include EPA in its sports bars because it had previously developed and patented a process to refine EPA for its line of fish-oil capsules. Because of the success of the Nutri-Sports Energy Bar in the United States, NutriStar is considering offering it in Latin America. With its domestic facility currently operating at capacity, the President of NutriStar has decided to investigate the option of adding approximately 10,000 square feet of production space to its facility in Latin America at a cost of $5 million.

Reference no: EM131025230

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