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CASE THERMO FISHER SCIENTIFIC Investment in a new production line Thermo Fisher Scientific is the world's leading biotechnology company with an annual revenue of 18
CASE THERMO FISHER SCIENTIFIC Investment in a new production line Thermo Fisher Scientific is the world's leading biotechnology company with an annual revenue of 18 billion USD and over 55.000 employees worldwide. company's mission is to help customers make the world healthier, cleaner and more secure. The company helps their customers advance research in life sciences solve complex analytical challenges, improve patient diagnostics and increase labo- ratory productivity. Through the leading brands - Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific and Unity Lab Services - the company offers a combination of innovative technologies, purchasing options and comprehensive support. In Denmark, Thermo Fisher Scientific has three locations with a total of 500 employees. They are located in Roskilde, Hvidovre and Alleroed, where the location in Roskilde is the largest with a factory, gamma radiation facility and a number of regional and global functions. The following assignment deals with considerations regarding a new product. If the product in question is to be manufactured, it will be necessary to build a new pro duction line, which will require the following investments: . Injection molding machine: 2 million DKK Molds:2.5 million DKK Vision system: 15 million DKK Automation equipment: 4.5 million DKK Interior furnishings, etc: 1.5 million DKK The expected receipts from sales of the product and the expected variable costs of manufacturing the product are shown in Table 1. NB: As the assignment concerns an investment problem, the theoretically correct terms are 'receipts and payments: However, since many 'payments" do not act as
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