1. Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about the manufacturing and shipping costs of locating in each of these four cities:

City	Fixed Cost per Year	Variable Manufacturing Cost per Unit	Variable Shipping Costs per Unit
Phoenix	$300,000	$70	$5
Buffalo	$600,000	$56	$4
Seattle	$1,500,000	$36	$2
Atlanta	$1,750,000	$42	$5

1. Use break-even analysis to determine where Dennison should locate. Show all your work.
2. What are the assumptions of breakeven analysis?
3. Based solely on the break-even quantity, if Dennisons manufacturing forecast for the foreseeable future is 40,000 units annually, where should he locate?
4. How would you report this to management?