Give answer of all questions and take like The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations.Annual Fixed Cost ($) Unit Variable Cost ($)LocationABCD320,000210,000520,000120,00025351545a. Choose the correct graph for the total cost curves for the four plant locations.The correct graph is -Select- vA.$2,500,000$2,000,000-$1,500,000-$1,000,000-$500,000Total cost7.500 15.000 22.500 30.000 37.500 45,000ШАBC.Total cost$2.500.000-$2.000.000-$1,500,000-$1,000,000$500,000CUnitsB.Total cost$2,500,000-$2,000,000-$1,500,000$1,000,000$500.0007.500 15,000 22.500 30.000 37,500 45.000DШАBD.Total cost$2,500,000-7.500 15.000 22.500 30.000 37,500 45.000BсIDUnits$2,000,000-$1.500.000-$1,000,000-$500,000+CDUnitsUnits7.500 15.000 22.500 30.000 37,500 45,000BC■Db. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number.LocationsBreak-even point(units)A-BA-CA-DB-CB-DC DAt Q less than thebreak-even point,which location hasa cost advantage?-Select- ✓At Q more than thebreak-even point,which location hasa cost advantage?-Select- ✓-Select- ✓-Select- ▼-Select- v-Select- ✓-Select- v-Select- v-Select--Select- ✓-Select- ✓-Select- ✓c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar.Location -Select- is best for the predicted demand because it results in the lowest total cost of $

Here we have to calculate the total Costs and break even points.The term "total cost" describes the…

$1,000,000- $500.000- 7,500 15.000 22.500 30,000 37,500 45.000 A B C. Total cost $2,500,000- $2.000.000 $1,500,000- $1.000.000- $500,000 ис $1,000,000- $500,000 Units Units 7.500 15,000 22.500 30.000 37,500 45.000 D A B C D D. Total cost $2,500,000 $2.000.000 $1.500.000- $1,000,000- $500,000- Units 7.500 15.000 22.500 30.000 37.500 45.000 ША B с D Units 7.500 15.000 22.500 30.000 37.500 45,000 A IB С b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number. At Q less than the break-even point, which location has Locations Break-even point (units) A-B A-C a cost advantage? -Select- -Select- ▼ A-D -Select- B-C -Select- B-D C-D At Q more than the break-even point, which location has a cost advantage? -Select- v -Select- v -Select- -Select- v -Select- v -Select- v -Select- v -Select- c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar. Location -Select- is best for the predicted demand because it results in the lowest total cost of $

$1,000,000- $500.000- 7,500 15.000 22.500 30,000 37,500 45.000 A B C. Total cost $2,500,000- $2.000.000 $1,500,000- $1.000.000- $500,000 ис $1,000,000- $500,000 Units Units 7.500 15,000 22.500 30.000 37,500 45.000 D A B C D D. Total cost $2,500,000 $2.000.000 $1.500.000- $1,000,000- $500,000- Units 7.500 15.000 22.500 30.000 37.500 45.000 ША B с D Units 7.500 15.000 22.500 30.000 37.500 45,000 A IB С b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number. At Q less than the break-even point, which location has Locations Break-even point (units) A-B A-C a cost advantage? -Select- -Select- ▼ A-D -Select- B-C -Select- B-D C-D At Q more than the break-even point, which location has a cost advantage? -Select- v -Select- v -Select- -Select- v -Select- v -Select- v -Select- v -Select- c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar. Location -Select- is best for the predicted demand because it results in the lowest total cost of $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Give answer of all questions and take like

The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations.
Annual Fixed Cost ($) Unit Variable Cost ($)
Location
A
B
C
D
320,000
210,000
520,000
120,000
25
35
15
45
a. Choose the correct graph for the total cost curves for the four plant locations.
The correct graph is -Select- v
A.
$2,500,000
$2,000,000-
$1,500,000-
$1,000,000-
$500,000
Total cost
7.500 15.000 22.500 30.000 37.500 45,000
ША
B
C.
Total cost
$2.500.000-
$2.000.000-
$1,500,000-
$1,000,000
$500,000
C
Units
B.
Total cost
$2,500,000-
$2,000,000-
$1,500,000
$1,000,000
$500.000
7.500 15,000 22.500 30.000 37,500 45.000
D
ША
B
D.
Total cost
$2,500,000-
7.500 15.000 22.500 30.000 37,500 45.000
B
с
ID
Units
$2,000,000-
$1.500.000-
$1,000,000-
$500,000+
C
D
Units
Units
7.500 15.000 22.500 30.000 37,500 45,000
B
C
■D
b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number.
Locations
Break-even point
(units)
A-B
A-C
A-D
B-C
B-D
C D
At Q less than the
break-even point,
which location has
a cost advantage?
-Select- ✓
At Q more than the
break-even point,
which location has
a cost advantage?
-Select- ✓
-Select- ✓
-Select- ▼
-Select- v
-Select- ✓
-Select- v
-Select- v
-Select-
-Select- ✓
-Select- ✓
-Select- ✓
c. The sales manager predicts that demand will be 28,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar.
Location -Select- is best for the predicted demand because it results in the lowest total cost of $

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Step 1: Define the Problem:

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Step 2: Choose the correct Graph

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Solution

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Step 3: Break - Even for Locations A and B

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Step 4: Break - Even for Locations A and C

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Step 5: Break - Even for Locations A and D

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Step 6: Break - Even for Locations B and C

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Step 7: Break - Even for Locations B and D

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Step 8: Break - Even for Locations C and D

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Step 9: Complete the table:

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Step 10: TC for 28,000 Units

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