Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For what quantity would you be indifferent between selecting site A or site B?
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Consider the following information about sites A, B, and C:
Fixed costs are the cost that remains constant through a period, say one year. Fixed costs include expenses such as rent, depreciation, amortization, etc. Variable costs include expenses that are volatile in nature such as operating expenses. variable expenses are based on various factors that are internal and external to a firm.
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- Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7For what range of output would you prefer site A?Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7What are total costs for site C for a quantity of 5,000 units per year?Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For the preferred site for 20,000 units per year, what would be your total costs?
- Q5- The fixed and variable costs for three potential banking branch are as followsSite fixed cost Variable costLoc1 500$ 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 locationA 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?Andec is considering opening a new smelter in Cuenca; Quito, or Portoviejo, to produce rebar. The following fixed cost and variable cost data were collected.a) Plot the total cost lines.b) In what annual volume range will each facility have a competitive advantage? each facility?c) Perform the intersection volume calculation for the locations. Costs per Unit Location Fixed cost per year Material Variable labor General Expenses Cuenca $73.000 $0,50 $0,40 $0,55 Portoviejo $55.000 $0,45 $0,55 $0,60 Quito $80.000 $0,38 $0,80 $0,90
- During a major expansion in 2004, Douwalla’s Import Company developed a new processing line for which the delivered equipment cost was $1.75 million. This year, the board of directors decided to expand into new markets and expects to build the current version of the same line. Estimate the cost if the following factors are applicable: construction cost factor is 0.20, installation cost factor is 0.50, indirect cost factor applied against equipment is 0.25, and the total plant cost index has risen from 2509 to 3713 over the years.Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. locations A B C D fixed costs 60,000 80,000 100,000 130,000 variable costs/units 30 20 15 10 i. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis. ii. Over what range of output is location A the most preferred location? iii. Over what range of output is location B the most preferred location? iv. Over what range of output is location C the most preferred location?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?
- Given the capacity planning discussion in the text (see Figure S7.6 ), what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand?Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?not certain how to calculate because it says each item sells for 17,000. also, I wouldnt be sure which numbers to graph with 1. A small producer of machine tools wants to move to a larger building, and has identified twoalternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 perunit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1.The finished items sell for $17,000 each.A) State the total-cost formula:B) Calculate a second point for each location: Set a selected quantity = ____ Use q=150 units C) Sketch the total-cost lines for the locations on a single graph.