Question
b) The fixed and variable costs for three (3) potential manufacturing sites for a rattan weaver are shown below: Site Fixed Cost Per Year
b) The fixed and variable costs for three (3) potential manufacturing sites for a rattan weaver are shown below: Site Fixed Cost Per Year (RM) Variable Cost per Unit (RM) A 600 10 B 1500 8 C 2400 5 i) Plot the crossover chart for the above problem. ii) Over what range of volume is each location optimal? iii) For a production of 100 units, which is the best site? (12 marks)
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
