Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As a Group: Using Table 1 in the case duplicate the sensitivity analysis of the production points for the three options considered in the case

  1. As a Group: Using Table 1 in the case duplicate the sensitivity analysis of the production points for the three options considered in the case by management:

1) Build an entire new production facility that would enable GEI to produce all of the products it needed,

2) Outsource production to build partners,

3) Expand the existing GEI facility to increase production. Construct these in a spreadsheet resembling the following (start with 100 units and increment the units upward by 100 units until you have calculated it to 30,000 units:

Option 1

Option 2

Option 3

New location

Subcontract

Expand

Fixed costs

$4,000,000.00

$0.00

$1,250,000.00

Variable cost

$55.00

$255.00

$155.00

Total costs per proposal fixed and variable

Plan A

Plan B

Plan C

Units

New location

Subcontract

Expand

100

Calculate this

Calculate this

Calculate this

200

30000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuing Agile The Financial Management Of Agile Projects

Authors: Alan Moran

1st Edition

0117082880, 9780117082885

More Books

Students also viewed these Finance questions