A company is developing a new app that will allow customers to track the progress of their

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A company is developing a new app that will allow customers to track the progress of their orders. The app 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 app.

Once launched, it is estimated that the new app will attract extra business that will generate profits of €5,000 per week. However, if the app is delayed by more than 5 weeks, the extra profit generated would reduce to €2,000 per week. How will a delay of 5 weeks affect the time when the design will break even in terms of cash flow?

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Operations Management

ISBN: 978-0273776291

7th Edition

Authors: Nigel Slack ,Alistair Brandon-Jones ,Robert Johnston

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