Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For the preferred site for 20,000 units per year, what would be your total costs?
Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For the preferred site for 20,000 units per year, what would be your total costs?
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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Question
Consider the following information about sites A, B, and C:
Site A B C
FC (annual) $100.000 $120.000 $150.000
VC (per unit) $10 $8 $7
For the preferred site for 20,000 units per year, what would be your total costs?
Expert Solution
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Step 1
Total cost = Fixed cost + (Variable cost per unit * Volume)
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