Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two...

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Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $920,000 and variable costs of $13,000 per standard unit. The finished items sell for $29,000 each. a) Evaluate the volume of output at which the two locations would have the same profit? b) Evaluate the range of output at which Bonham would be superior (have higher profits)? c) Evaluate the range for McKinney to be selected as superior location? Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $920,000 and variable costs of $13,000 per standard unit. The finished items sell for $29,000 each. a) Evaluate the volume of output at which the two locations would have the same profit? b) Evaluate the range of output at which Bonham would be superior (have higher profits)? c) Evaluate the range for McKinney to be selected as superior location?