Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-4 (Algo) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased

image text in transcribed
image text in transcribed
Problem 8-4 (Algo) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives. A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $275,000 per year, and variable costs would be $560 per boat. Subcontracting would involve a cost per boat of $2.530, and expansion would require an annual fixed cost of $57,000 and a variable cost of $1,020 per boat a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank-be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B C 0 or to to more Check my Factor (100 points each) Convenience Parking facilities Display-area Shopper traffic Operating costs Neighborhood Location ABC Composite Score Weight 0.15 0.20 0.18 0.27 0.10 0.10 1.00 87.33 ANERKEN 84 83 92 86 88 91 LOCALEUR acure B 90 95 92 93 90 9881 75 92 88 95 Click here for the Excel Date File a. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 90 79

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The 3 Signal The Investing Technique That Will Change Your Life

Authors: Jason Kelly

1st Edition

0142180955, 978-0142180952

More Books

Students also viewed these Finance questions

Question

Which are non projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

Identify the elements that make up the employee reward package.

Answered: 1 week ago

Question

Understand the purpose, value and drawbacks of the interview.

Answered: 1 week ago