A retail store in Adamstown, PA would result in annual fixed costs of$300,000 and variable costs of $55 per unit. Annual fixed costs atAllentown, PA site are $600,000 with variable costs of $32 per unit. Salesvolume is estimated to be 30,000 units per year. Which location has thelower cost at this volume? How large is its cost advantage? At what volumeare the two facilities equal in cost?

Given data Cost for location Adamstown Annual fixed cost = $300000 Variable cost = $55 Cost for…

Answered: A retail store in Adamstown, PA would…

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 small firm produces and sells novelty items in a five-barangay area. The firm expects to consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely scattered locations. The leading candidate for location will have a monthly fixed cost of Php42, 000 and variable costs of Php3 per card. Cards sell for Php7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break-even point?
A small firm produces and sells novelty items in a five-barangay area. The firm expects toconsolidate assembly of its greeting cards line at a single location. Currently, operations are in three widelyscattered locations. The leading candidate for location will have a monthly fixed cost of Php 42,000 andvariable costs of Php3 per card. Card sell for Pho7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break-even point?
Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Location B are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be 30,000 units per year. Which location has the lower cost at this volume? How large is its cost advantage? At what volume are the two facilities equal in cost?
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Q5- The fixed and variable costs for three potential banking branch are as followsSite fixed cost Variable costLoc1 500$ 11$Loc2 1000$ 8$Loc3 1700$ 5$a- For what range of customer number is each location optimalb- For a number of customers of 250, what is the best location
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