< Back
Glass Piping/Specialty Glass Consolidation at One of Existing Sites
|
Proceeds from Sale of One Plant (Book Value of Plant & Equipment) |
Moving Costs (Key Technology & Personnel) |
|
|---|---|---|
| Specialty Glass | $43.5 million |
$24.0 million |
| Glass Piping | $56.5 million |
$35.0 million |
- Cost Savings (Transportation) - $2.4 million/yr
- Net Sales - $105 million (represents annual decrease in current sales of both plants due to lowered production capacity)
- Net Profit - $6.0 million ($600k loss over existing for both plants)
- Consequences - create a one-time increase in income (sale of one plant), while permanently lowering capacity for GP and SG