D= 33 Capacity Cushion C= 7.00% Customers Per Day= 51 Percent of the present Demand=65.

00%

M=

36%

USE THIS FOR PROB 2 & 3 ITEM Demand Forecast Lot size Standard processing time Standard setup time Hourse per Shift Shifts per day Days Per year Capacity Cushion

KITES WIND SOCKS N= 2880 32,000 15000 25 80 0.3 1 3 4 8 2 180 25 ##### 2160 Machines/workstations Company Operates 4 M Machines req (Prob 3)= 14 # of add machines required (prb 2)= 10

Problem 4 Year Attendance Admission Expansion Exp increase Attendance Purch Adj Prop Add Atractions Add Operating Costs per year Cash Flows Attr to expansion year 0 Cash Flows Attr to expansion year 1 Cash Flows Attr to expansion year 2 Cash Flows Attr to expansion year 3 Cash Flows Attr to expansion year 4 Cash Flows Attr to expansion year 5 B. (When does it become positive?) Cash Flows Effect of Initial Investment Cash Flows Effect of Initial Investment Cash Flows Effect of Initial Investment Cash Flows Effect of Initial Investment Cash Flows Effect of Initial Investment Cash Flows Effect of Initial Investment 1 2 3 4 5 31,000 #### #### #### #### $30 $30 $35 $35 $35 30% $250,000 $575,000 $100,000 ###### $179,000 $215,000 $293,750 $309,500 $320,000

Year###### 0 Year###### 1 Year###### 2 Year###### 3 Year$172,250 4 Year$492,250 5

Decimal remains to be recovered (Change cell depending on year) 0.43 Year before it becomes positive? 3 Years to recover the investment 3.43

Day Mon. Tues. Wed. Thurs. Fri. Sat. Sun. Cars 160 180 150 140 295 300 250 Hours a day 12 Automatic Washing Station can handle per HOUR 30 Interior Cleaning Station can handle per 230 DAY Additional Equipment Cost 100000 Increase interior cleaning capacity per DAY 300 Car Wash pretax contribution 3 Total Capacity Automatic washing station 360