Question
The major drug company is trying to determine the correct plant capacity for a new drug. A unit of annual capacity can be built for
The major drug company is trying to determine the correct plant capacity for a new drug. A unit of annual capacity can be built for a cost of $10. Each unit of the drug sells for $15 and incurs variable cost of $2. The drug will be sold for 10 years. Develop a worksheet that computes the company’s 10 years profit given the chosen annual capacity level and the annual demand for the drug. We will assume demand for the drug is the same each year. You can ignore the time value of money in this problem.
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Managerial Decision Modeling With Spreadsheets
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
3rd Edition
136115837, 978-0136115830
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