1- Break Even Analysis

A company is seeking to expand and set up a new facility. The top executives would like to make a decision based on cost and choose one from three candidate cities. Candidate City Fixed cost per year ($) Variable Cost ($) Iowa City $150,000 $82.00 Des Moines $200,000 $53.00 Indianapolis $550,000 $37.00 If expected production volume is 10,000 units per year, which location is most cost effective?

2- Aggregate Planning Strategy

Part II- Problems and Essay -Answer two [2) Questions in this Hart [36 points! 1- Break Even Analysis A company is seeking to expand and set up a new facility. The top executives would like to make a decision based on cost and choose one from three candidate c1t1es. Candidate City F ixed cost per year ($) Variable Cost ($) Iowa City $150,000 $82.00 Des Moines $200,000 $53.00 Indianapolis $550,000 $3 200 If expected production volume is 10,000 units per year. which location is most cost effective? 2- Aggregate Planning Strategy An auto parts manufacturer supplies to several automakers and has the following numbers for monthly demand from automakers. Month Demand # Production Days January 250 22 February 400 18 March 180 20 April 85 21 May 555 20 June 375 22 Calculate the inventory carrying implications of following a level strategy