Question
Latin America Facility Space Available for Footwear Production Equipment in Y12 Production Equipment in Place at Beginning of Y12 (000s of pairs) Purchase of Production
Latin America Facility
Space Available for Footwear Production Equipment in Y12
Production Equipment in Place at Beginning of Y12 (000s of pairs)
Purchase of Production
Equipment
New (000s of pairs)
Refurbished (000s of pairs)
Sale of Existing Equipment (oldest equipment will be sold first)
Total Footwear Production Capability in Y12 (000s of pairs without OT)
Percentage of New / Refurbished Production Equipment
9,000 pairs
5,000 pairs
0
pairs
0
pairs
0
pairs
5,000 pairs
100%
0%
2,000 pairs
0 pairs
0
pairs
0
pairs
0
pairs
0 pairs
0%
0%
7,000 pairs
4,000 pairs
0
pairs
0
pairs
0
pairs
4,000 pairs
25%
75%
2,000 pairs
0 pairs
0
pairs
0
pairs
0
pairs
0 pairs
0%
0%
Production Improvement Options
North America Facility
Europe-Africa Facility
Asia-Pacific Facility
Latin America Facility
Option
A
Purchase of special equipment
to reduce reject rate by 50%
Capital outlay ($000s)
Projected annual cost savings
at current reject rate ($000s)
Option
B
Layout revisions to reduce pro-
duction run setup costs by 50%
Capital outlay ($000s)
Projected annual cost savings
at current model count ($000s)
Option
C
Purchase of special equipment
to increase S/Q rating by 1 star
Capital outlay ($000s)
Projected annual cost savings
at current S/Q effort ($000s)
Option
D
Robot-assisted production to in-
crease worker productivity by 50%
Capital outlay ($000s)
Projected annual cost savings
at current production / comp.
$12,500
$4,268
No
$8,000
$2,200
No
$24,000
$8,707
No
$72,000
$10,813
No
$0
$0
No
$0
$0
No
$0
$0
No
$0
$0
No
$10,000
$1,953
No
$6,400
$1,610
No
$19,200
$4,251
No
$57,600
$1,271
No
$0
$0
No
$0
$0
No
$0
$0
No
$0
$0
No
Space for Production Equipment
North America Facility
Europe-Africa Facility
Asia-Pacific Facility
Latin America Facility
Space in 000s
of Pairs
(without OT)
Equipment Space at the End of Year 11
Construction of Additional Space (initiated in Y11)
Space Available for Equipment in Year 12
Construction of New / Additional Space (to be available in Year 13)
Space Available for Production Equipment in Year 13
5,000
pairs
4,000
9,000
pairs
0
pairs
9,000
pairs
0
pairs
2,000
2,000
pairs
0
pairs
2,000
pairs
6,000
pairs
1,000
7,000
pairs
0
pairs
7,000
pairs
0
pairs
2,000
2,000
pairs
0
pairs
2,000
pairs
Capital Outlays
in Year 12
($000s)
Purchase of New Equipment
Purchase of Refurbished Equipment
Book Value of Equipment Sold
Equipment Upgrade Options
Energy Efficiency Initiatives
New / Additional Facility Space
Net Capital Outlays in Year 12
$
0
0
0
0
500
0
$
500
$
0
0
0
0
0
0
$
0
$
0
0
0
0
400
0
$
400
$
0
0
0
0
0
0
$
0
Latin America Facility 2.000 pairs Europe-Africa Facility 2,000 pairs O pairs pairs 0 O pairs pairs Asia-Pacific Facility 7,000 pairs 4,000 pairs 0 pairs 0- pairs 0 paire 4,000 pairs 25% 75% pairs OY 0 0 pairs pairs pairs O pairs O pairs Opis 0% 0% 0% 0% = Menu Help Print Save Decisions Projected Year 12 Performance Investor Change Scoring Measures Year 12 Epeation Other Measures Year 12 from Y11 EPS $0.92 $3.00 Net Revenues 600e512,135 +0.0% ROE money 6.6% 22.0% Net Profit (680008 20,689-46,4% Credit Rating C+ Image Rating 72 72 Ending Cash 43,897 +16,293 North America EQUIPMENT FOR FOOTWEAR PRODUCTION Facility Space Available for Footwear Production Equipment in Y12 9,000 pairs Production Equipment in Place at Beginning of Y12 (100s at pairs) 5.000 pairs Purchase of Production New (000s of pais) 0- Equipment Refurbished 1000s of pairs) Sale of Existing Equipment (oldest equipment will be sold tirst 0 Total Footwear Production Capability in Y12 (000s of pars without on 5,000 pairs Percentage of New / Refurbished Production Equipment 100% 0% PRODUCTION IMPROVEMENT OPTIONS North America Facility Option Purchase of special equipment Capital outiny (5000) $12,500 No Projected annual cost angs A to reduce reject rate by 50% at current reject rate (5000s $4,268 Option Layout revisions to reduce pro Palacted annual contings Capital outiny ($000 $8,000 No duction run setup costs by 50% of current model count 90008 B Option Purchase of special equipment Capital outlay (5000s/ $24.000 Now savings to increase s/Q rating by 1 star current 5/0 unfort (50008) $8,707 $72.000 Option Robot-assisted production to in- Capital outlay (8000) No D crease worker productivity by 50% Projetoe annual cost savings $10,813 SPACE FOR PRODUCTION EQUIPMENT North America Facility Space in 000s -Equipment Space at the End of Year 11 5,000 pairs of Pairs 4.000 Construction of Additional Space (initiated in Y11] (without OT Space Available for Equipment in Year 12 9,000 pairs Construction of New / Additional Space (to be available in Year 139 Space Available for Production Equipment in Year 13 9.000 pairs Europe-Africa Facility $0 No $0 $0 $0 No Asia-Pacific Facility $10,000 No $1.953 56.400 No $1.610 $19,200 Now $4.251 $57,600 No $1.271 Latin America Facility $0 Now $0 $0 No $0 $0 No $0 $0 No - $0 $2,200 $0 $0 No $0 $0 No No - Europe-Africa Facility O pairs 2,000 2.000 pairs pairs 2.000 pairs Asia-Pacific Facility 6,000 pairs 1.000 7,000 pairs pairs 7.000 pairs Latin America Facility O pairs 2,000 2,000 pairs pairs pains 0- 2.000 pairs $ S Capital Outlays in Year 12 (5000) Purchase of New Equipment Purchase of Refurbished Equipment -Book Value of Equipment Sold Equipment Upgrade Options Energy Efficiency Initiatives New / Additional Facility Space Net Capital Outlays in Year 12 0 0 D 0 500 D 500 olOOOOOO 0 0 0 0 400 0 400 S Latin America Facility 2.000 pairs Europe-Africa Facility 2,000 pairs O pairs pairs 0 O pairs pairs Asia-Pacific Facility 7,000 pairs 4,000 pairs 0 pairs 0- pairs 0 paire 4,000 pairs 25% 75% pairs OY 0 0 pairs pairs pairs O pairs O pairs Opis 0% 0% 0% 0% = Menu Help Print Save Decisions Projected Year 12 Performance Investor Change Scoring Measures Year 12 Epeation Other Measures Year 12 from Y11 EPS $0.92 $3.00 Net Revenues 600e512,135 +0.0% ROE money 6.6% 22.0% Net Profit (680008 20,689-46,4% Credit Rating C+ Image Rating 72 72 Ending Cash 43,897 +16,293 North America EQUIPMENT FOR FOOTWEAR PRODUCTION Facility Space Available for Footwear Production Equipment in Y12 9,000 pairs Production Equipment in Place at Beginning of Y12 (100s at pairs) 5.000 pairs Purchase of Production New (000s of pais) 0- Equipment Refurbished 1000s of pairs) Sale of Existing Equipment (oldest equipment will be sold tirst 0 Total Footwear Production Capability in Y12 (000s of pars without on 5,000 pairs Percentage of New / Refurbished Production Equipment 100% 0% PRODUCTION IMPROVEMENT OPTIONS North America Facility Option Purchase of special equipment Capital outiny (5000) $12,500 No Projected annual cost angs A to reduce reject rate by 50% at current reject rate (5000s $4,268 Option Layout revisions to reduce pro Palacted annual contings Capital outiny ($000 $8,000 No duction run setup costs by 50% of current model count 90008 B Option Purchase of special equipment Capital outlay (5000s/ $24.000 Now savings to increase s/Q rating by 1 star current 5/0 unfort (50008) $8,707 $72.000 Option Robot-assisted production to in- Capital outlay (8000) No D crease worker productivity by 50% Projetoe annual cost savings $10,813 SPACE FOR PRODUCTION EQUIPMENT North America Facility Space in 000s -Equipment Space at the End of Year 11 5,000 pairs of Pairs 4.000 Construction of Additional Space (initiated in Y11] (without OT Space Available for Equipment in Year 12 9,000 pairs Construction of New / Additional Space (to be available in Year 139 Space Available for Production Equipment in Year 13 9.000 pairs Europe-Africa Facility $0 No $0 $0 $0 No Asia-Pacific Facility $10,000 No $1.953 56.400 No $1.610 $19,200 Now $4.251 $57,600 No $1.271 Latin America Facility $0 Now $0 $0 No $0 $0 No $0 $0 No - $0 $2,200 $0 $0 No $0 $0 No No - Europe-Africa Facility O pairs 2,000 2.000 pairs pairs 2.000 pairs Asia-Pacific Facility 6,000 pairs 1.000 7,000 pairs pairs 7.000 pairs Latin America Facility O pairs 2,000 2,000 pairs pairs pains 0- 2.000 pairs $ S Capital Outlays in Year 12 (5000) Purchase of New Equipment Purchase of Refurbished Equipment -Book Value of Equipment Sold Equipment Upgrade Options Energy Efficiency Initiatives New / Additional Facility Space Net Capital Outlays in Year 12 0 0 D 0 500 D 500 olOOOOOO 0 0 0 0 400 0 400 SStep by Step Solution
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Principles Of Macroeconomics
Authors: Frank, Bernanke, Antonovics, Heffetz
3rd Edition
1259117162, 9781259117169
