A manager is looking for a new facility location. The annual fixed costs and variable costs for two alternatives follow. At what level of annual output wouldeach location provide the same total cost?A. 25,000 units per yearB. 12,500 units per yearC. 33,333 units per yearD. 5,000 units per yearLocationABFixed Costs per Year$200,000$250,000Variable Costs per Unit$10.00$6.00

Facility location is the process of determining the optimal location for a facility such as a…

Answered: A manager is looking for a new facility…

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...

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Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
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A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.43 a minute for daytime calls and $.18 a minute for evening calls. Plan B has a charge of $.53 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 250 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 140 minutes of day calls and 60 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) c. Suppose that the agent expects both daytime and evening calls. At what point…
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How important feasibility studies as a prior step in setting up restaurant/food service facilities?
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