There is a beer company. Its current sales is X. It manufactures the beer bottles in-house at present. Since the World Cup is approaching, it is expected that the sales will become 2X. The beer company has to take a call whether it should increase its production. If it increases production, it will have to manufacture more bottles. At present the bottles manufacturing plant is running at 80% capacity. Firstly decide if the company should increase its beer production or not. I had to ask for all the costs involved and selling price from the interviewer. If we go with the option of increasing the production, then shall we manufacture the bottles in-house or outsource them. The costs for each of the activity was given. Explore all possible scenarios and decide.
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