Labeling is considered the primary bottleneck for the company. Some variety packs require especially heavy labor to
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Labeling is considered the primary bottleneck for the company. Some variety packs require especially heavy labor to assemble the different flavors, snap on the plastic lid, and affix the labels in the right place. Sweet Bites Cakes is also considering a new labeling machine (different from the machinery in Opportunity 1) with an estimated 5-year life. The machine would cost $500,000 and save an estimated $14,500 per month in labor cost. It is expected to increase throughput by $13,000 revenues per month with roughly 20% markup on incremental production costs (excluding new investment).
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International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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