Suppose that Baldwin will increase its automation to 6.5 this year. Each new unit of automation costs $4 per unit of capacity. An additional $4 per point of automation applies to any new capacity. How much will this investment in automation cost? $24,500,000 $28,000,000 $56,000,000 $49,000,000
Suppose that Baldwin will increase its automation to 6.5 this year. Each new unit of automation costs $4 per unit of capacity. An additional $4 per point of automation applies to any new capacity. How much will this investment in automation cost? $24,500,000 $28,000,000 $56,000,000 $49,000,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Suppose that Baldwin will increase its automation to 6.5 this year. Each new unit of automation costs $4 per unit of capacity. An additional $4 per point of automation applies to any new capacity. How much will this investment in automation cost?
$24,500,000
$28,000,000
$56,000,000
$49,000,000
Transcribed Image Text:Name
Able
Acre
Aspire
Athena
Baker
Bold
Cake
Cookie
Candy
Daze
Drive
Dare
Plant Details
Units Sold Production Outsource
2759
1251
635
254
2028
1998
2751
2156
1930
781
1101
2133
1336
485
148
1930
1534
Capacity
Automation
2524
1435
0
1683
742
643
1815
305
1561
401
100
550
50
650
0
0
50
600
Andrews
4,200
5.2
Baldwin
3,500
4.5
72
46
567
295
213
199
250
191
0
184
154
55
Inventory Inventory Inventory
Americas Europe Asia-Pacific
1280
226
414
0
146
130
62
52
0
181
45
87
0
221
429
0
139
79
74
24
0
Chester
4,000
7.0
0
0
0
Average
Price
$30.13
$40.58
$25.60
$40.99
$37.67
$38.67
$26.00
$25.50
$0.00
$23.00
$35.75
$23.50
Digby
3,100
7.5
Average
Material
Costs
$8.70
$12.74
$7.08
$13.98
$12.73
$12.88
$7.97
$6.75
$0.00
$6.50
$12.07
$7.61
Average Average
Labor Costs Shipping
$9.85
$8.94
$11.18
$11.02
$9.36
$9.85
$5.88
$7.76
$0.00
$5.17
$5.82
$8.26
$2.96
$1.93
$5.41
$0.00
$1.80
$1.80
$1.62
$1.58
$0.00
$1.00
$1.14
$1.64
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