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A manufacturing company is considering three potential locations for a new plant. The fixed cost (land, property taxes, insurance, equipment, and building) and the variable
A manufacturing company is considering three potential locations for a new plant. The fixed cost (land, property taxes, insurance, equipment, and building) and the variable cost (labor, materials, transportation, and variable overhead) are given in the table below. Location Fixed Cost Per Year Variable Cost Per Unit Arlington $150,000 $62 Brookfield $300,000 $38 Coburg $500,000 $24 Answer the following questions based on the table. Write your final answer only (without intermediate steps) for the fill-in-the-blank questions. Use 2-decimal accuracy for the final answer, e.g., 0.12, when necessary. Question 14 (4 points) If the expected production volume is 10,000 units per year, the best location for the new plant is Cannot tell; more information is needed. Coburg Brookfield Arlington Question 15 (4 points) A/ At a production volume of units per year, the operations manager would be indifferent between Arlington and Brookfield (i.e., find the crossover point between Arlington and Brookfield). Use 2-decimal accuracy for the final answer, e.g., 0.12, when necessary
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