Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed above.
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ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager of
productions and operations has three possible locations to choose from. His assistant
recommends that he use break-even analysis location technique to help determine which
location is best based on costs.
. If total fixed cost = 40000
Price per unit = 10
Break even point = 40000 / 20 - 10= 4000
So at the 4000 units of production, there will be no
Demonstrate to the OM manager how to go about choosing the best location using the
numerical example you designed above.
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