7) Calculate the annual return on investment (ROI) in for the process improvement in Example 5.5 if the factory operates 300 days per year, but only sells 500 widgets per day. Uved Searc! G ) Calc S earc cc41a0b4605b5ada85e431ad3412/MyFiles/Downloads/pdf%20book/engr%20book.pdf @ Searc Example 5.5 Assume the cost of producing a new product is $1,000,000. Then, the BEP occurs when net profit from the product reaches $1,000,000. Let's say the profit per widget is $1.00, and we're selling 1000/day. Need: BEP = years for a project costing $1,000,000 assuming you are selling 1000/day with a profit of $1.00 per widget. Know-How: Equate cost to total money stream. Solve: 1000 [widgets/day] * 1.00 [$/widget] * D [days) = $1,000,000. Solving for D gives: D = 1000 days = 2.74 years. In Example 5.5, it will take 2.74 years to reach the BEP. Is this good enough? It depends on the industry. Many companies would prefer a BEP of 18 months or less. Instagram 00:31 32%O 7) Calculate the annual return on investment (ROD) in for the process Improvement is Example 5.5 if the factory operates 300 days per year, but only wells 500 widgets per day 10. SadaSe31ad3412/Miles/Download boken 2000 Example 5.5 Assume the cost of producing a new product is $1,000,000. Then, the BEP occurs when net profit from the product reaches $1,000,000. Let's say the profit per widget is $1.00, and we're selling 1000/day. Need: BEP- years for a project costing $1,000,000 assuming you are selling 1000/day with a profit of $1.00 per widget. Know-How: Equate cost to total money stream. Solve: 1090 [widgets/day] * 1.00 [S/widget] *D [days) - $1,000,000. Solving for D gives: D-1000 days - 2.74 years. In Example 5.5, it will take 2.74 years to reach the BEP. Is this good enough? It depends on the industry. Many companies would prefer a BEP of 18 months or less