Question
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
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 annual fixed cost of $800,000 per year and variable costs of $15,000 per standard unit produced. McKinney would have annual fixed cost of $920,000 and variable cost of $14,000 per standard unit. The finished items sell for $30,000.
a) The volume of output at which both the locations have the same profit =
enter your response here
standard units (round your response to the nearest whole number).
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 ___ standard units.
d) The break-even point for Bonham is ___ units. (Enter your response rounded to the nearest whole number.)
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