Question
A home furnishing company is trying to compare three convenient alternative locations to establish the new factory, and you have data about the expected costs
A home furnishing company is trying to compare three convenient alternative locations to establish the new factory, and you have data about the expected costs of establishing a new factory as in the following table: (A, B, C) in three governorates:
sale priceper onevariable cost, per unitAnnual fixed costsSite
(A)40 00070130
(B)80 00040130
(C)110 00010130
Required: 1- Draw a line for total costs for each site, using the site break-even analysis for the production volume Expected (5,000) pieces of furniture. Indicating the best location when the volume of production (4 000) units.
2- Determine the best location within each of the expected annual production ranges and up to (6,000) pieces.
3- Calculate the expected profit in the best location when the production volume of (4 000) pieces.
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