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A biotechnology manufacturing plant can manufacture 80 kg crude enzyme solution (10% by weight solution) per day from its microbial fermentation vats for a daily cost of $8147 and 100 kg per day of the 10% crude enzyme solution for a total daily cost of $9647.  Costs are linear with production.

If further purification of the solution to a powdered and packaged enzyme product adds 30% to the cost, what will be the cost of manufacturing 100 g of the powdered enzyme? Again, all costs are linear with production. Any “shrinkage” or waste/loss has been included in the cost figures given.

 

 

 If this company needs to earn 20% profit on this product, what should be the price for 10 g of the final enzyme powder?

    • 10 years ago
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