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Period Demand
2012 5000
2013 5500
2014 6500
2015 7000
2016* 6500 up to june 2016
2016 7476
2017** 8000 *we assume that the economic growth for 2017 and 2016 same
at the beginning of july 2016, the government announced that the nations economic growth will alow
The government predicts the economic growth at 6.8% for next three months, to anticipate the lower
2. Your company is one of the market pioneers who curently hold 40%-45% market share. Based on m
3. Product price growth in the Past 4 years
2012 2013 2014 2015
Maximum $ 350.00 $ 350.00 $ 385.00 $ 320.00
Average $ 200.00 $ 280.00 $ 250.00 $ 290.00
Minimum $ 180.00 $ 265.00 $ 220.00 $ 275.00
017 and 2016 same
onomic growth will alow down for the next three months, but they are confident it will regain strengths in the mo
I assume that when we want to know about the average price for year 2017
we should following the economic growth, in the case we know that the economic growth is 6.8 %.
In 2016 I multiple the total price of 2015 with 6.8%, when I got the result
I divided it with 12 months to know the average price.
after know the price for 2016 i use the similar way to know the price for 2017.
I got 3.887627 by multiple the total price in 2016 with 6.8% because every year economic is growing.
Period Price/1kg cost
2012 2.35 23.5
2013 2.625 26.25
2014 4.5 45
2015 3.408333 34.08333
2016 3.6401 36.401
2017 3.887627 38.87627
$2,000.00
The avearge price from 2012 until 2015 is
average cost $ 5,337.50 $1,000.00
average output 2550 $-
average price/unit $ 2.09 2100 2200 230
The cost for 2016 and 2017 I multiply with the average price/unit
Electricity
$7,000.00
$6,000.00
f(x) = 1.221364432x + 2314.8948361758
$5,000.00 R = 0.6980165021
$4,000.00
$3,000.00
$2,000.00
$1,000.00
$-
2100 2200 2300 2400 2500 2600 2700 2800 2900 3000 3100
Period Inspection time cost
2012 100 $ 2,500.00
2013 150 $ 2,650.00
2014 175 $ 2,800.00
2015 180 $ 2,850.00
$3,000.00
2016* 144 $ 2,570.40
2017** 108 $ 1,927.80 $2,500.00
The inspection cost is realixed as a non value added cost to the company,
$2,000.00
and the management wishes to minimize and to get rid of this cost in the next 5 years period
so we divide 180 hours with 5 years to minimize the cost we get 36 hours, in 2016 we reduce the 36 h
$1,500.00
we get 144 hours for 2016 and we do the same thing for 2017 and we get 108 hours for 2017
$1,000.00
average hours from 2012 until 2015 is 151.25
average cost from 2012 until 2015 is $ 2,700.00 $500.00
average cost/hour (inspection time) is $ 17.85
$-
180 hours : 5 = 36 90
$2,000.00
years period
6 we reduce the 36 hours from previous year
$1,500.00
urs for 2017
$1,000.00
$500.00
$-
90 100 110 120 130 140 150 160 170 180 190
Depreciation
The company's fixed asset
Type asset estimated life estimated residual value
Machineries 17000 on 21 march 2010 1000
calculation : (17000-1000)/8 years = 2000/years
For 2017 depreciation expense is 9/12*2000=1500
Estimated Reidual Value
$ 50,000
$ 10,000
$ 1,000
machineries because it has relation on production process