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Author Question: A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per ... (Read 88 times)

audie

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on: Dec 3, 2019

Question 1

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

FactorWeightGary MallBelt Line
Affluence of local population.203030
Traffic flow.405020
Parking availability.203040
Growth potential.201030

The score for Gary Mall is ________ and the score for Belt Line is ________.
◦ 34; 28
◦ 20; 24
◦ 120; 120
◦ 18; 120
◦ 22; 24

Question 2

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost?
◦ Plant A, because it is cheaper than Plant B for all volumes.
◦ Neither Plant A nor Plant B, because the crossover point is at 10 million units.
◦ Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units.
◦ Plant B, because it has the lower variable cost per unit.
◦ Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units.
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Marked as best answer by audie on Dec 3, 2019

lindahyatt42

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Reply #1 on: Dec 3, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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audie

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review

ricroger

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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