This topic contains a solution. Click here to go to the answer

Author Question: A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per ... (Read 94 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561

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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by PhilipSeeMore on Dec 3, 2019

cloud

  • Sr. Member
  • ****
  • Posts: 343
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.
Answer Preview
Only 25% of students answer this correctly




PhilipSeeMore

  • Member
  • Posts: 561
Reply 2 on: Dec 3, 2019
Thanks for the timely response, appreciate it


mammy1697

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library