Question
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)
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:
Fixed Cost / Variable Cost | Option 1 New location $4,000,000.00 $55.00 | Option 2 Subcontract $0.00 $255.00 | Option 3 Expand $1,250,000.00 $155.00 | |
Units | Total Price per proposal - fixed and variable Plan A New Location | Total Price per proposal-fixed and variable Plan B Subcontract | Total Price per proposal- fixed and variable Plan C Expand | |
100 | ||||
200 | ||||
.... | ||||
.... | ||||
.... | ||||
.... | ||||
.... | ||||
... | ||||
30000 |
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