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9 November, 02:09

A 1,500,000 SF plant employs 300 people and produces 177,000 LCD panel per month. The plant is idle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $4,000,000 per month and variable costs of $90 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.

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  1. 9 November, 02:20
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    The total operating cost for the plant per YEAR is $225,000,000.

    Explanation:

    Fixed cost = $4,000,000 for month

    Variable cost = $90 per LCD panel.

    Total LCD panels produced in a month = $ 177,000.

    Total operating cost = Fixed cost + variable cost

    = 12*4,000,000 + 10*177,000*100

    = 48,000,000 + 177,000,000

    = $225,000,000

    Therefore, The total operating cost for the plant per YEAR is $225,000,000.
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