Which plant should the firm choose

Reference no: EM131874085

Problem: A firm decides whether to produce products by an onshore plant or an offshore plant. The fixed cost and the variable cost of the onshore plant are dollar 40,000 dollar 1.2, while the fixed cost and the variable cost of the offshore plant dollar 30,000 and dollar 1.0 the variable cost includes all costs related to production and (suppose transportation). The capacities of the onshore plant and the offshore plant are 20,000 and 16,000 respectively. The demand in the next season is estimated to be high, 20,000, with the chance 50percentage, and be low, 18.000, with the chance 50 percentage. The marginal revenue of each unit of product is dollar 5.

Question: Which plant should the firm choose?

Reference no: EM131874085

Questions Cloud

Which design appears to be the best environmental design : A firm is considering five different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below.

How is the process affected by how fast the oxidation occurs : How is the process affected by how fast the oxidation occurs? What are the primary accelerants? Identify and describe them.

Profit functions for this production process : Find the cost, revenue, and profit functions for this production process. GRAPH ALL three functions on the same set of axis. GRAPH AND LABEL the intersection

Write pseudocode to represent the logic of a program : Draw a flowchart or write pseudocode to represent the logic of a program that allows the user to enter a value. The program divides the value by 2 and outputs.

Which plant should the firm choose : A firm decides whether to produce products by an onshore plant or an offshore plant. The fixed cost and the variable cost of the onshore plant are dollar.

What tools are necessary to collect the evidence : What tools are necessary to collect the evidence? Describe. What challenges exist regarding the collection of the evidence? Explain.

What is the resulting standard deviation : What is the resulting standard deviation (SD) of the converted list? Please list the step to get the answer

Calculate the maximum quantity : Calculate the maximum quantity that would have the manager select purchasing the motors from the vendor.

Explain the difference between civil and criminal law : Identify, explain and give examples demonstrating the differences between civil and criminal law in terms of.

User Account

All Pages