when to go from green area to red area (building placement)

[Guest]

I making Computers and i have 20 E-factory's 40m in green area. Now I got a lot of money and i want to make another 15 E-factory's. Then I will almost be at my building maximum. And I was wondering: The Green area may be cheaper, but at some point it must be better to have your buildings in de red area because of the extra production there. My question: When is it better (or at what production is it better) to go from green to red area. Or is it always better to build in red or green? Where should I build my new buildings?

If somebody could tell me this and help me, that would be great

[Guest]

For your level, green is better because its cheaper. For big companies, they dont have much building space, so they build in red to produce more products at the same time. Green is better for you, because it does not cost much like red. I build in red e-factories. And if your interested, i buy electronics so IGM my company.

[Guest]

e-factories in red are not good as far as i know, because the production costs are massive

[Guest]

http://www.kapitools.de/prodmengen-rechner-en.php
Here you can see and calculate for yourself what the difference is.
Try different sized buildings and you will see the difference in production output between green and red increase when size of buildings increase.
For instance:

Electronic Factory 40 m2 in Red:
Computers:
Production costs: 570,00

[Guest]

I build them in red. Green area(1000m2 e-factory) produces 30063 televisions. Red area produces 3970. Thats a good difference. Lets say, about 1000 televisions more than green area.

Televisions q0 sell for 2500 or less i think.

2500x1000:2,500,000

Thats 2.5 million.

Im going to build 40 factories 1000m2 in red.

2.5x40:100 million difference.


So just like i said, big companies use red cause it affects a lot when they build in it. Small companies build in green, because it doesnt have much of an effect.

[Guest]

I agree somewhat, problem is only: expanding green buildings is not very profitable or sensible, like you said, once you get bigger it is better to have red buildings. so you could also take that into consideration and build an Electronic Factory in red right from the start, even though you are small.
don't you think?
You can then expand those red buildings without having to worry about having to replace them in the future, also, if you do decide to sell them one day, they will sell a lot easier.

[Guest]

One TV in green costs 108 caps + materials cost to produce
One TV in red costs 360 caps + materials cost to produce

So you get a +25% bonus in red. Good. That means the extra 25% produced must cover the difference in production costs between red and green TVs. So, difference is 360-108=252 caps per TV.

Now what we are looking for here is that the 25% more televisions just cover the 252 caps per television to break even.

So 1.25*(x-252)=1*x, where x is the profit per TV. This is simple maths which people learn in primary schools. (I hope you dont have problems with understanding it people)

Solving the equation gives us x=1004. That means the pure profit per TV produced, not sold in the shop.

Given that people buy TVs for 2k and the materials cost over 1k, pure profit per TV is lower than 1004 caps and therefore its better to have green E-factories

[EDITED by GREED inc.: I just realized i made a stupid mistake in calculation, the breakeven profit per TV is actually 1260 caps per unit]

[Guest]

Yes, I do understand your explanation, (even though it was almost 30 years ago I was in primary school)
But the difference in production gets bigger with larger buildings while productioncost (One TV in green costs 108 caps, One TV in red costs 360 caps) stay the same, if you know what I mean.

[Guest]

i know what you mean, but still it doesnt matter because its all about the ratio of 1.25, not the difference of amount produced in absolute sense. You can try it

40 computers sold for 1260 profit/unit = 50400 profit
50 computers sold for 1008 profit/unit = 50400 profit

400 computers sold for 1260 profit/unit = 504000 profit
500 computers sold for 1008 profit/unit = 504000 profit

and so on (note that 25% bonuse remains unchanged for a 20sqm green factory compared to 20sqm red factory as well as for a 32670sqm green one compared to 32670sqm red one.

[Guest]

okay, thnx everybody
also for you quick reply's!
I think I will stick with green atm