Husky project

According to the information in this case (exhibit #6), Husky charges for its product $200,000 higher relatively to competitor’s product. We think the premium above is justified from the customer’s point of view, the following calculation will be made: Husky
Major Competitor
Cycle time
10.4 seconds
11.8 sec.
Avg. Op. hrs./day
22.3 hours
18.9 hrs
Purchase price
$1.2 million
$1.0 million
* PET preform system producing 48 preforms per cycle, for production of 20-ounce soft drink bottle
* Flour space occupied: Husky=343.1 sqFt, Competitor=351.8 sqFt.
Part 1:
Calculating the amount of days it will take to product the same amount of products with the Husky’s machine:
((60sec)/(10.4sec))=((amount of cycle per min)*(48 preforms per cycle))*(60min)
=Bottles produced per hr.
=16,615.38 Bottles per Hr. *((60/10.4)*48)*60
= (Bottles per hr.)*24hrs
=370,523.08 per day
=370,523.08*365days
= 135,240,924.2 Bottles per year
Major Competitor’s: = Same calculation above = (60/11.8)*48)*60 = (14,644.07 per day)*(24hrs) = 276,722.88 per day = 276,722.88*365days = 101,003,851.2 Bottles per year
Therefore, 135,240,924.2 Bottles per year - 101,003,851.2 Bottles per year
= Husky produces 34,237,073 more Bottles per year