Question
(a) Identify two important factors that a location planner should consider with respect to each of the following: (i) (ii) (i) (ii) A multi-specialty hospital
(a) Identify two important factors that a location planner should consider with respect to each of the following: (i) (ii) (i) (ii) A multi-specialty hospital An Aluminium processing unit (b) A Company plans to replace its existing metal casting facility with a new one. The company is considering two possible capacities for the new facility: 350,000 or 500,000 units per year. The 350,000 unit plant would have an annual fixed cost of Rs. 5000,000 and a per unit production cost of Rs. 50; the 500,000 unit plant would have an annual fixed cost of Rs. 7800,000 and a per unit cost of Rs. 40. The Company sells its cast products for an average price of Rs. 75 per unit. Compute the breakeven point for each capacity alternative. Suppose the Company projects its sales to be 190,000 units next year and it expects them to grow by 5% each year for the 10 years. Which capacity option would you recommend and why?
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