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Author Question: An operations manager has narrowed down the search for a new plant to three locations. Fixed and ... (Read 34 times)

gonzo233

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An operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow:

Plot the total cost curves in the chart provided and identify the range over which each location would be best. Then use break-even analysis to calculate exactly the break-even quantity that defines each range.

Which of the following statements is correct?
◦ The break-even quantity between A and B is less than or equal to 1700 units.
◦ Location A becomes the most expensive place to produce at volumes less than 2000.
◦ The break-even quantity between C and B is more than 3000 units.
◦ Location C is the best one if volumes are quite low.


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Marked as best answer by gonzo233 on Apr 18, 2020

zacnyjessica

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gonzo233

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Reply 2 on: Apr 18, 2020
Thanks for the timely response, appreciate it


bdobbins

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Reply 3 on: Yesterday
Excellent

 

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