A home furnishing company is trying to compare three convenient alternative locations To establish the new factory, and you have data about the expected costs of establishing a new factory As in the following table: (A, B, C) in three governorates: sale price per one variable cost, per unit Annual fixed costs Site ( A ) 30 000 80 130 ( B ) 90 000 50 130 ( C ) 120 000 20 130 Required: 1- Draw a line for total costs for each site, using the site break-even analysis for the production volume Expected (4,000) pieces of furniture. Indicating the best location when the volume of production (3 000) units. 2- Determine the best location within each of the expected annual production ranges and up to (5,000) pieces. 3- Calculate the expected profit in the best location when the production volume of (3 000) pieces.
A home furnishing company is trying to compare three convenient alternative locations To establish the new factory, and you have data about the expected costs of establishing a new factory As in the following table: (A, B, C) in three governorates:
sale price per one variable cost, per unit Annual fixed costs Site
( A ) 30 000 80 130
( B ) 90 000 50 130
( C ) 120 000 20 130
Required: 1- Draw a line for total costs for each site, using the site break-even analysis for the production volume Expected (4,000) pieces of furniture. Indicating the best location when the volume of production (3 000) units.
2- Determine the best location within each of the expected annual production ranges and up to (5,000) pieces.
3- Calculate the expected profit in the best location when the production volume of (3 000) pieces.
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