As part of a locational break-even analysis, an operations analyst at MGX Ltd produced the graph below. Cost, Rand 140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 A. Johannesburg B. Cape Town 2000 O C. Durban O D. None 4000 Locational break-even analysis 6000 1 8000 Quantity produced, Units 10000 12000 ..... Johannesburg -Cape Town --Durban Suppose that the management of MGX Ltd has decided on a daily capacity of 8 000 units of the product to be manufactured at the selected location, which of the locations should be selected? 14000 16000

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Please assist with the attached, 

As part of a locational break-even analysis, an operations analyst at MGX Ltd produced the graph
below.
Cost, Rand
140000000
120000000
100000000
80000000
60000000
40000000
20000000
0
0
O A. Johannesburg
B. Cape Town
C. Durban
2000
O D. None
4000
Locational break-even analysis
6000
1
1
8000
Quantity produced, Units
10000
12000
..... Johannesburg
-Cape Town --Durban
Suppose that the management of MGX Ltd has decided on a daily capacity of 8 000 units of the
product to be manufactured at the selected location, which of the locations should be selected?
14000
16000
Transcribed Image Text:As part of a locational break-even analysis, an operations analyst at MGX Ltd produced the graph below. Cost, Rand 140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 0 O A. Johannesburg B. Cape Town C. Durban 2000 O D. None 4000 Locational break-even analysis 6000 1 1 8000 Quantity produced, Units 10000 12000 ..... Johannesburg -Cape Town --Durban Suppose that the management of MGX Ltd has decided on a daily capacity of 8 000 units of the product to be manufactured at the selected location, which of the locations should be selected? 14000 16000
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.