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$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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 $
Transcribed Image Text: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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