In the MikesBikes Advanced simulation each product requires a certain number of SCU to produce. The table below shows the SCU required per bike for the first year of the simulation.
|Market Segment||SCU per Bike|
Note: A product improvement increases the required SCU per Bike, while a Cost
Reduction reduces it.
Buy / Sell Factory Capacity
The Factory Capacity decision sets the maximum production capacity of your factory, measured in Standard Capacity Units (SCU).
Each year you can either purchase additional SCU or sell existing SCU:
The cost to purchase additional capacity is $160 per SCU and you can purchase up to a maximum of 25,000 SCU per annum.
Factory capacity can be sold at the end of any period. The sale price of each SCU will differ depending on the age of the plant and how well it has been maintained. Any difference between sale price and book value will be reported in your accounts as either a loss or gain on sale (see the Factory Overhead Allocation Rates report).
Note: Plant is depreciated in the annual accounts using the diminishing value method,
at a rate of 20% per annum.
Related Article: How is my factory capacity lost to wastage?