Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its new manufacturing facilityto four cities. The following information is known about the manufacturing and shipping costs of locating in each of these four cities:Variable ManufacturingVariable ShippingFixed Costsper YearCosts per UnitCosts per UnitPhoenix$350,000$70.00$5.00Buffalo$600,000$51.00$4.00Seattle$1.400,000$34.00$2.00Atlanta$1,650,000$35.00$5.00a. Use break-even point analysis to determine where Darren should locate.Quantity per YearChoiceless than unitsbetween andunitsmore thanunits

Let the demand = Q Total cost = Fixed cost + Veriable cost

Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its to four cities. The following information is known about the manufacturing and shipping costs of locating in each of these four cities: Fixed Costs per Year $350,000 Variable Manufacturing Costs per Unit $70.00 Variable Shipping Costs per Unit $5.00 Phoenix Buffalo $600,000 $51.00 $34.00 $4.00 Seattle $1,400,000 $2.00 $5.00 Atlanta $1,650,000 $35.00 a. Use break-even point analysis to determine where Darren should locate. Quantity per Year units Choice less than between and units more than units

Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its to four cities. The following information is known about the manufacturing and shipping costs of locating in each of these four cities: Fixed Costs per Year $350,000 Variable Manufacturing Costs per Unit $70.00 Variable Shipping Costs per Unit $5.00 Phoenix Buffalo $600,000 $51.00 $34.00 $4.00 Seattle $1,400,000 $2.00 $5.00 Atlanta $1,650,000 $35.00 a. Use break-even point analysis to determine where Darren should locate. Quantity per Year units Choice less than between and units more than units

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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