Nipponply: Analyzing the Feasibility of Geographical Expansion

1.Determine the fixed costs per year for the project.

(Note: correction to the case, Exhibit 6, personnel costs are stated as yearly amounts, not monthly as the case states)

2.Determine the break-even point in units for the expansion

3.If Nipponply wants to earn 3,000,000 rupees per year, how many units need to be sold?

4.Determine the change to return on investment and return on equity if Nipponply operates at 85% of capacity and 100% of capacity.

5.Should Nipponply expand?Support your answer with figures.

https://hbsp.harvard.edu/download?url=%2Fcourses%2F691754%2Fitems%2FW18653-PDF-ENG%2Fcontent&metadata=e30%3D