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[Chapter 8] Location Strategy A manufacturing company has narrowed the search for a new plant to three potential locations. The fixed cost and the variable
[Chapter 8] Location Strategy A manufacturing company has narrowed the search for a new plant to three potential locations. The fixed cost and the variable cost are given in the table below. Location Fixed Cost Per Year Variable Cost Per Unit Ashland $240,000 $15 Beaverton $120,000 $30 Clearlake $180,000 $20 Answer the following questions based on the table. Write your final answer only (without intermediate steps) for the fill-in-the-blank questions. Question 40 (4 points) At a production volume of A units per year, the management would be indifferent between Ashland and Beaverton (i.e., find the crossover point between Ashland and Beaverton). Use 2-decimal accuracy for the final answer, e.g., 0.12, when necessary. Question 41 (4 points) If the expected production volume is 5,600 units per year, the best location for the new plant is Cannot tell; more information is needed. Beaverton Clearlake Ashland
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