Question
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to three different
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to three different locations considered for a new manufacturing facility.
LOCATION | ANNUAL FIXED COSTS | UNIT VARIABLE COSTS |
Site A | $35,000 | $15 |
Site B | $30,000 | $21 |
Site C | $20,000 | $25 |
| a. | Site B is the desired location if the production rate is 833 units per year | |
| b. | Choose site C if you are producing 1000 units per year | |
| c. | Choose site C if you are producing more than 1500 units per year | |
| d. | The breakeven point for Sites A and B is 1500 units per year |
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Supply Chain Management A Logistics Perspective
Authors: John coyle, John Langley, Robert Novack, Brain Gibson
9th edition
9780538479189, 9781285400945, 538479191, 538479183, 1285400941, 978-0538479196
