1. Initial Cost for New manufacturing process:
new process | 11,900,000.00 |
Training | 2,900,000.00 |
Total Cost | 14,800,000.00 |
2. Total Cost after 3 Year if New manufacturing process proposed
Particulars | Year 1 | Year 2 | Year 3 | Total cost after 3 Year |
Installation Cost | 11,900,000.00 | |||
Training | 2,900,000.00 | |||
Saving | (599,900.00) | (599,900.00) | (599,900.00) | |
Emilinated cost @49 Per unit of 2900 Unit | (142,100.00) | (142,100.00) | (142,100.00) | |
Warrenty Cost @2100 of unit shipped I.e 1740 units | 182,700.00 | 182,700.00 | 182,700.00 | |
Total Cost | 14,240,700.00 | (559,300.00) | (559,300.00) | 13,122,100.00 |
Cost after rework & repair
Total Capacity | Rework | Unit Shipped | Repair 15% of unit shipped | |
Unit | 2900 | 1160 | 1740 | 261 |
Particular | Year 1 | Year 2 | Year 3 | Total cost after 3 Year |
Rework cost | 1,700,000.00 | 1,700,000.00 | 1,700,000.00 | 5,100,000.00 |
Variable cost for rework @1900 per unit | 2,204,000.00 | 2,204,000.00 | 2,204,000.00 | 6,612,000.00 |
Transportation cost for warranty goods @2400 | 626,400.00 | 626,400.00 | 626,400.00 | 1,879,200.00 |
13,591,200.00 |
Total saving of cost if new manufacturing process implemented = 13,591,200 - 13,122,100 = 469,100
Please assist Each year, Worrix Corporation manufactures and sells 2,900 premium quality multimedia projectors at $11.900...
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