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Peggy Lane Forp., a producer of machine tooks wants to move to a larger site. Two alternative locations have been identified: Bonham and Mckinney. Bonham
Peggy Lane Forp., a producer of machine tooks wants to move to a larger site. Two alternative locations have been identified: Bonham and Mckinney.
Bonham would have fixed costs of $820,000 per year and variable costs of $14,000 per standard unit produced.
Mckinney would have annual fixed costs of $940,000 and variable costs of $12,800 per standard unit.
The finished iteams sell for $28,000 each.
Please answer A-D
A) The volume of output at which both the locations have the same profit= __ 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. (0, 100, or 120?)
C) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, McKinney is superior above __ standard units. (0,80, or 100?)
D) The breakeven point for Bonham is ___ units. The breakeven point for McKinney is __ units.
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