# Project #73869 - 4 short questions to answer just your view, no calculations needed and don't need to cite work. no format needed

4 short questions to answer just your view, no calculations needed and don't need to cite work. No format needed.

1.Alternative 2 would be the best option for me.  The anticipated worth of alternative two is near 100,000 dollars less than alternative 1.  In the final two demand instances the entire cost is less than alternative two than in one.  However in the 25000 units it would be lesser to go with alternative one since its entire cost is \$200,000 lesser than two.  Generally the costs are lesser in alternative 2 than they are in alternative 1.

Capacity    \$100,000(fixed cost)       \$10 (variable cost)

Total cost    100,000 + 10(x)

100,000 + 10(25,000)=                    350,000  low

100,000 + 10(60,000)=                    700,000  medium

100,000 + 10(100,000)=                  1,100,000 high

EV       (350,000 x 30%) + (700,000 x 40%) +(1,100,000 x 30%) =  715,000

Capacity     \$500,000(fixed cost)         \$2 (variable cost)

Total cost   500,000 + 2(x)

500,000 + 2(25,000)=                      550,000  low

500,000 + 2(60,000)=                      620,000   medium

500,000 + 2(100,000)=                    700,000   high

EV       (550,000 x 30%) + (620,000 x 40%) + (700,000 x 30%)  =623,000

2

 Option 1 Capacity \$500,000 (fixed). \$2 (variable) Total cost. 500,000 + 2(x) 500,000+ 2(25,000)= 550,000 Low 500,000+2(60,000)= 620,000 Med 500,000+2(100,000)=700,000 High EV 30%*(550,000)+40%*(620,000)+30%*(700,000)= 623,000 Option 2 Capacity \$100,000 (fixed). \$10 (variable) Total cost 100,000+10(x) 100,000+10(25,000)= 350,000 Low 100,000+10(60,000)= 700,000 Med 100,000+10(100,000)= 1,100,000 High EV 30%*(350,000)+40%*(700,000)+30%*(1,100,000)=715,000 I believe with a higher demand option two would work, but my preferred option is one. The fixed cost is a bit higher but the cost per unit is quite lower. While the overall cost is lower in option one as well   3

 Subject General Due By (Pacific Time) 06/15/2015 12:00 am
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