At the current sales rate how long would it take to pay, Ask an Expert

Management Studies

A domestic producer of carrying carts, Pramble, buys the wheels from a company located in Europe. Currently, the wheels cost $4 each, but for a number of reasons the price will double. In order to produce the wheels themselves, Pramble would have to add to existing facilities at a cost of $800,000. It estimates that its unit cost of production would be $3.50. At the current time, the company sells 10,000 carts annually. Assume there are four (4) wheels per cart.

At the current sales rate, how long would it take to pay back the investment required for the expansion?

If sales are expected to increase at a rate of 15 percent per year, how long will it take to pay back the expansion?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M978178
Price:- $15

Guranteed 24 Hours Delivery, In Price:- $15

Have any Question?Write your Review or question?

Related Questions in Operation Management

This week we dig into the importance of creating an outline

This week we dig into the importance of creating an outline as well as developing powerful opening and closing remarks. For part 1 of this week’s discussion discuss the purpose of an outline. Be sure to address some of t ...

1 given the following limitations of observational studies

1. Given the following limitations of observational studies, why are they still used in business research? Researcher bias can bias the design of a study. Researcher bias can enter into data collection. Sources or subjec ...

Assignmentresearch write and submit a five 5 page double

Assignment Research, write, and submit a five (5) page, double spaced report on a Global Business topic. (A list has been provided for your writing subject) These five (5) pages exclude the title page and the page listin ...

A firm sells boxes and uses a q-system to manage the

A firm sells boxes and uses a Q-system to manage the inventory. The policy specifies Q=54 boxes, R=90 boxes. At one moment yesterday, they had 36 boxes in the warehouse and they placed an order, which will be delivered t ...

Required words 15001 write report on the difference between

Required Words 1500 1. Write report on the difference between strategic management from general management and appraise its importance in developing a competitive advantage. OR 2. Write report on the proficiency of writt ...

Each american family is classified as living in an urban

Each American family is classified as living in an urban, suburban, or rural location. During a given year, 15% of all urban families move to a suburban location, and 5% move to a rural location; also, 6% of all suburba ...

Radio shack sells a 32gb flash drive weekly demand for the

Radio Shack sells a 32GB flash drive. Weekly demand for the 32GB flash drive in one of their stores is normally distributed with a 1.25 and standard deviation of 0.5. The store places orders weekly and there is a one-wee ...

1 state the options available to enhance accessibility for

1. State the options available to enhance accessibility for those users who may have difficulty using a computer conventionally. 2. Do you think these types of ads will be successful in the long run? Ad's that contain ba ...

Examine the differences between state and federal

Examine the differences between state and federal regulations of managed care. Which regulations have more impact on managed care? Explain. Requirements: Submit your essay in a Word document. This assignment must be at l ...

1 in 1000 words write a case study eassy on how the

1. In 1000 words write a case study eassy on how the NBA(National basketball association) affects the economy both national and international. 2. Ansoff growth matrix analysis of IKEA in India and give many business stra ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert