Peggy Lane$$ Corp., a producer of machine$$ tools, wants to move to a larger site. Two alternative locations have been$$ identified: Bonham and McKinney. Bonham would have fixed costs of $ $780$ comma $000$ per year and variable costs of $ $14$ comma $000$ per standard unit produced. McKinney would have annual fixed costs of $ $940$ comma $000$ and variable costs of $ $12$ comma $800$ per standard unit. The finished items sell for $ $29$ comma $000$ each.

Part $2$

$$a$)$ The volume of output at which both the locations have the same profit$=$

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$$b$)$ Based on the analysis of the$$ volume, after rounding the numbers to the nearest whole$$ number, Bonham is superior below standard units.

c$)$ Based on the analysis of the$$ volume, after rounding the numbers to the nearest whole$$ number, McKinney is superior above

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standard units.