=+ 2 A company is developing a new app that will allow customers to track the progress

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=+ 2 A company is developing a new app that will allow customers to track the progress of their orders. The website developers charge €10,000 for every development week and it is estimated that the design will take 10 weeks from the start of the design project to the launch of the website. Once launched, it is estimated that the new site will attract extra business that will generate profits of €5,000 per week. However, if the website is delayed by more than five weeks, the extra profit generated would reduce to €2,000 per week. How will a delay of five weeks affect the time when the design will break even in terms of cash flow?

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Operations Management

ISBN: 115145

8th Edition

Authors: Nigel Slack , Alistair Brandon Jones , Robert Johnston

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