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Guide Questions - Case #1

NIPPONPLY : Analyzing the Feasibility of Geographical Expansion

Assignment Questions

1. Determine the fixed cost of Nipponply for a period of one year.

2. Find the break-even point. Can Nipponply achieve the break-even point with a 65
percent level of capacity utilization?

3. How many units need to be sold to earn a target income of Rupee 3 million per year?

4. How does the volume affect the return on equity and return on investment?
Nipponply is planning to use the capacity at a level of 85 percent and 100 percent in
years two and three, respectively. How does this decision affect the return on
investment and return on equity?

5. What advice can be given to Thakkar on his project idea?

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