How much would it be worth for company to make expansion


Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year.

These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats keeps the warehouse full of these WM-4 motors.

The warehouse can hold 5,000 cubic feet of boating supplies. Douglas estimates that the ordering cost is $10 per order, and the carrying cost is estimated to be $10 per motor per year. Douglas Boats is considering the possibility of expanding the warehouse for the WM-4 motors. How much should Douglas Boats expand, and how much would it be worth for the company to make the expansion? Assume demand is constant throughout the year.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: How much would it be worth for company to make expansion
Reference No:- TGS098999

Expected delivery within 24 Hours