Business, 27.03.2020 02:16 Arealbot

Using a lead approach to capacity planning, Digby forecasts an increase in demand for its product Dizzy of 1,000 units in year 6. Given this forecast, Digby company purchases 1,000 units of capacity with an automation level of zero for its product Dizzy in year 5. In year 6, demand for Dizzy only increases by 200 units. The CM/unit of Dizzy is $3. What is the ROI for this investment in capacity, and what is the cost in dollars of the excess capacity (i. e., what is the amount expended for unproductive assets) in year 6?

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Using a lead approach to capacity planning, Digby forecasts an increase in demand for its product Di...

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