1. A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. 1a.) For which volume of business would the two locations be equally attractive (Hint: the crossover point)? Please show your work. New Jersey Delaware Variable Costs ($ per unit) _____ (Please pick a number from 11-20 and fill in the blank above. Use the number for your calculation.) _____ (Please pick a number from 21-30 and fill in the blank above. Use the number for your calculation.) Fixed Costs $___________ (Please pick a number from 1,000,000-1,200,000 and fill in the blank above. Use the number for your calculation.) $___________ (Please pick a number from 800,000-1,000,000 and fill in the blank above. Use the number for your calculation.) 1b.) If the company plans on producing 50,000 units, which location would be more attractive? Please show your work.
1. A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below.
1a.) For which volume of business would the two locations be equally attractive (Hint: the crossover point)? Please show your work.
|
|
New Jersey |
Delaware |
|
Variable Costs ($ per unit)
|
_____
(Please pick a number from 11-20 and fill in the blank above. Use the number for your calculation.) |
_____
(Please pick a number from 21-30 and fill in the blank above. Use the number for your calculation.) |
|
Fixed Costs
|
$___________
(Please pick a number from 1,000,000-1,200,000 and fill in the blank above. Use the number for your calculation.) |
$___________
(Please pick a number from 800,000-1,000,000 and fill in the blank above. Use the number for your calculation.) |
1b.) If the company plans on producing 50,000 units, which location would be more attractive? Please show your work.
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