You work for a company that makes small photoelectric modules that are sold to other companies...
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You work for a company that makes small photoelectric modules that are sold to other companies to be assembled into large solar power arrays. The graph on the next slide shows cost and revenue associated with this manufacturing process from its beginning until 800 days later. After about one and a half years, the company decides to increase its production due to increasing demand, so new manufacturing equipment is purchased. The graph shows the cost and revenue for this upgrade, as well as the cost and revenue projections if the upgrade was not implemented. Before the upgrade, the plant can make 400 units per day. After the upgrade, the plant can make 1200 units per day. Revenue (R) or Cost (C) [$] Millions 5 + w N 1 ... Revenue with upgrade Cost with upgrade I Revenue without upgrade Cost without upgrade 100 200 300 T 1 . 1 1 400 Time (t) [days] 500 1 1 600 700 800 a) What is the sales price of one unit before the upgrade? b) What is the initial cost of equipment and other fixed costs necessary before any solar modules are made? c) What is the fixed cost of the upgrade completed at Day 500? d) When does the company breakeven after the upgrade? e) How many total units need to be sold to make a profit of one million dollars after the upgrade? f) If the upgrade results in increased efficiency and a reduction in the manufacturing cost of two dollars per unit, when will the company break even after the upgrade? Support your answer by sketching a new line on the graph on the answer sheet as appropriate. You work for a company that makes small photoelectric modules that are sold to other companies to be assembled into large solar power arrays. The graph on the next slide shows cost and revenue associated with this manufacturing process from its beginning until 800 days later. After about one and a half years, the company decides to increase its production due to increasing demand, so new manufacturing equipment is purchased. The graph shows the cost and revenue for this upgrade, as well as the cost and revenue projections if the upgrade was not implemented. Before the upgrade, the plant can make 400 units per day. After the upgrade, the plant can make 1200 units per day. Revenue (R) or Cost (C) [$] Millions 5 + w N 1 ... Revenue with upgrade Cost with upgrade I Revenue without upgrade Cost without upgrade 100 200 300 T 1 . 1 1 400 Time (t) [days] 500 1 1 600 700 800 a) What is the sales price of one unit before the upgrade? b) What is the initial cost of equipment and other fixed costs necessary before any solar modules are made? c) What is the fixed cost of the upgrade completed at Day 500? d) When does the company breakeven after the upgrade? e) How many total units need to be sold to make a profit of one million dollars after the upgrade? f) If the upgrade results in increased efficiency and a reduction in the manufacturing cost of two dollars per unit, when will the company break even after the upgrade? Support your answer by sketching a new line on the graph on the answer sheet as appropriate.
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Essential University Physics
ISBN: 978-0321976420
3rd Edition Volume 2
Authors: Richard Wolfsonby, Richard Wolfson
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