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Page 3 of 4 Production
Plant Purchases
Floor space for each unit of capacity is $6.00. Add $4.00 for each point of automation. Additional capacity at an automation rating of 10.0 would cost $6.00 + $4.00 X 10.0 = $46.00 per unit.
Plant Sales
When you sell plant, you get $0.65 on each original dollar. Depending on the depreciated value of the plant, you could make a gain or a loss on the sale which will appear as a gain or loss on the income statement. (Capstone® uses a straight line depreciation method calculated over fifteen years. )
Second Shift / Overtime
Labor costs increase 50% when a second shift is hired or when the first shift works overtime.
Automation
Increasing automation will decrease labor costs. Between an automation of 1.0 (lowest) to 10.0 (highest), labor costs fall 10% for each point of automation.
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