Musuk Spices Company (MSC), Delhi, India, plans to set up a new plant at one of the following two locations: Bhopal and Agra in India. The fixed costs per year will be $ 450,000 and $ 300,000 per year for Bhopal and Agra respectively. The variable costs per pound are expected to be $ 10/lb. for Bhopal and $ 14/lb. for Agra respectively. The selling price is expected to be $ 30/lb.

Part 3 of Musk company problem.

What's the breakeven quantity for Agra and Bhopal respectfully?

given answers are

a. 27,500 lb, 18,700 lb

b. 18,750 lb, 22,500 lb

c. 25,340 lb, 22,340 lb

d. 9000 lb, 14360 lb