$1,000,000- $500.000- 7,500 15.000 22.500 30,000 37,500 45.000 A B C. Total cost $2,500,000- $2.000.000 $1,500,000- $1.000.000- $500,000 ис $1,000,000- $500,000 Units Units 7.500 15,000 22.500 30.000 37,500 45.000 D A B C D D. Total cost $2,500,000 $2.000.000 $1.500.000- $1,000,000- $500,000- Units 7.500 15.000 22.500 30.000 37.500 45.000 ША B с D Units 7.500 15.000 22.500 30.000 37.500 45,000 A IB С b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number. At Q less than the break-even point, which location has Locations Break-even point (units) A-B A-C a cost advantage? -Select- -Select- ▼ A-D -Select- B-C -Select- B-D C-D At Q more than the break-even point, which location has a cost advantage? -Select- v -Select- v -Select- -Select- v -Select- v -Select- v -Select- v -Select- c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar. Location -Select- is best for the predicted demand because it results in the lowest total cost of $
$1,000,000- $500.000- 7,500 15.000 22.500 30,000 37,500 45.000 A B C. Total cost $2,500,000- $2.000.000 $1,500,000- $1.000.000- $500,000 ис $1,000,000- $500,000 Units Units 7.500 15,000 22.500 30.000 37,500 45.000 D A B C D D. Total cost $2,500,000 $2.000.000 $1.500.000- $1,000,000- $500,000- Units 7.500 15.000 22.500 30.000 37.500 45.000 ША B с D Units 7.500 15.000 22.500 30.000 37.500 45,000 A IB С b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number. At Q less than the break-even point, which location has Locations Break-even point (units) A-B A-C a cost advantage? -Select- -Select- ▼ A-D -Select- B-C -Select- B-D C-D At Q more than the break-even point, which location has a cost advantage? -Select- v -Select- v -Select- -Select- v -Select- v -Select- v -Select- v -Select- c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar. Location -Select- is best for the predicted demand because it results in the lowest total cost of $
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Define the Problem:
VIEWStep 2: Choose the correct Graph
VIEWSolution
VIEWStep 3: Break - Even for Locations A and B
VIEWStep 4: Break - Even for Locations A and C
VIEWStep 5: Break - Even for Locations A and D
VIEWStep 6: Break - Even for Locations B and C
VIEWStep 7: Break - Even for Locations B and D
VIEWStep 8: Break - Even for Locations C and D
VIEWStep 9: Complete the table:
VIEWStep 10: TC for 28,000 Units
VIEWStep by step
Solved in 11 steps with 6 images
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