Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 6,750 4.2 L2 12,892 2.4 L3 8,632 3.3 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1, L2, or L3)
Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 6,750 4.2 L2 12,892 2.4 L3 8,632 3.3 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1, L2, or L3)
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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Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table.
|
Location
|
Fixed Cost/yr
|
variable cost/unit
|
|
L1
|
6,750
|
4.2
|
|
L2
|
12,892
|
2.4
|
|
L3
|
8,632
|
3.3
|
a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1, L2, or L3)
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