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.
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 two
alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per
unit; 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.
Expert Answer
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