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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Moon Micro is a small manufacturer of Servers that currently builds all of its product in Santa Clara, California. As the market for the servers grown dramatically , the Santa Clara Plant has reached the capacity of 10,000 servers per year. Moon is considering two options to increase its capacity. The first option is to add 10,000 units of capacity to the Santa Clara Plant at an annualized fixed cost of $ 10,000,000 plus $ 500 labor per server. The second option is to have Molectron, an independent assembler, manufacture servers for Moon at a cost of $ 2000 for each server ( excluding raw materials cost) . Raw materials cost $ 8000 per server and Moon sells each server for $ 15,000. Moon must take decision for a two year time horizon. Use discounted cash flow model to choose appropriate decision for Moon.
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