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. 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.) $___________ (Please pick a number from 800,000-1,000,000 and fill in the blank above. Use the number for your calculation.)
A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive (Hint: the crossover point)? Please show your work. New Jersey Delaware Variable Costs ($ 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.) $___________ (Please pick a number from 800,000-1,000,000 and fill in the blank above. Use the number for your calculation.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below.
- For which volume of business would the two locations be equally attractive (Hint: the crossover point)? Please show your work.
|
|
New Jersey |
Delaware |
|
Variable Costs ($ 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.) |
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