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Applichem’s Capacity Strategy

Autor:   •  November 15, 2018  •  820 Words (4 Pages)  •  589 Views

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Average yield on Raw Material A 94.70% 98.90% 90.40% 98.80%

1982 Production Volume (m lb) 17.2 38 14 4

Sales Volume (m lb) 12.3 20 29 11.9

Exports (m lb) 4.9 18 0 0

Imports (m lb) 0 0 15 7.9

Productivity Analysis

Labour Productivity (Sales Volume / Labour) 0.38 0.44 0.24 0.13

Cost Analysis

Total Costs (US $) $15,674,360.00 $27,458,800.00 $13,918,800.00 $5,879,200.00

1982 Annual Exchange Rate (currency/$1US) 96.5 2.38 1 235

Total Costs (Local Currency) 1,512,575,740.00 65,351,944.00 13,918,800.00 1,381,612,000.00

Total Utility Costs (US $) $206,606.40 $422,408.00 $271,110.00 $146,700.00

Total Utility Costs (Local currency) 19,937,517.60 1,005,331.04 271,110.00 34,474,500.00

Packaging & Shipping cost per labour ($/labour) 0.05 0.04 0.24 0.15

Benefit Analysis

Price 194.2 114.1 113.7 103.2

Industrial Price margin (Assumption) 10% 10%

Industrial Price (local currency) 213.62 114.1 113.7 113.52

Total Price (Industrial Price * Sales Vol) 2,627,526,000.00 2,282,000,000.00 3,297,300,000.00 1,350,888,000.00

Exports (Duty ignored) 1,046,738,000.00 2,053,800,000.00 - -

Imports (Duty ignored) - - 1,711,500,000.00 1,293,880,000.00

Total Profits (Local currency) 2,161,688,260.00 4,270,448,056.00 1,571,881,200.00 -1,324,604,000.00

Total Profits (US $) 22,400,914.61 1,794,305,905.88 1,571,881,200.00 -5,636,612.77

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