Price

Variable cost
inventory cost

selling

420
120

0
63000

1
105000

2
171000

3
261000

4
595

5
795

variable co
inventory c

420
120

Forecast
New capacity
present capacity
Gap

Plan 1
Forecast
New capacity
present capacity
inventory
Total units
inventory cost
capital cost
sales
profit

0
100
0
105
5

40
0
100
0
105
5

60000

1
140
0
105
-35

2
195
0
105
-90

3
270
0
105
-165

1
140
40
105
10
150
600
10000
84000
73400

2
195
40
105
-40
155
1200
1500
93000
90300

3
270
40
105

87000

4
350
0
105
-245

5
450
0
105
-345

Plan 2
4
350
40
105

87000

5
450
40
105

87000

20
0
100
0
105
5

1
140
20
130
-10

2
195
20
125
-70

inventory cost
capital cost
sales
60000
profit

600
5000
78000
69400

7500
75000
67500

Forecast
New capaci
present cap
Gap

3
270
20
125
-145

4
350
20
125
-225

5
450
20
125
-325

75000

75000

75000