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Please find the Cost Volume Analysis and explain how you did the calculations Compute cost volume analysis. Instructions Work the following problem using Excel. Belton
Please find the Cost Volume Analysis and explain how you did the calculations
Compute cost volume analysis. Instructions Work the following problem using Excel. Belton Power must decide between two locations on which to build a new power station to provide 50 megawatt hours of electricity a month. Location A would have a variable cost of $2,000 per megawatt hour and Location B would have a variable cost of $2,500 per megawatt hour. A power station at Location A would also require a fixed cost of $60,000 a month, although an estimate of the monthly fixed cost at Location B has not been made available yet, due to ongoing negotiations with a land owner there. a. At what fixed cost for Location B would Belton Power be indifferent to the choice of either of these two locations? b. Using the results in part a., which location would be the most cost effective at 30 megawatts? (Show your calculations.)Step by Step Solution
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