Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $940,000 and variable costs of $12,800 per standard unit. The finished items sell for $28,000 each. a) The volume of output at which both the locations have the same profit = standard units (round your response to the nearest whole number). %3D b) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Bonham is superior below standard units. c) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, McKinney is superior above V standard units. d) The break-even point for Bonham is units. (Enter your response rounded to the noor
Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $940,000 and variable costs of $12,800 per standard unit. The finished items sell for $28,000 each. a) The volume of output at which both the locations have the same profit = standard units (round your response to the nearest whole number). %3D b) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Bonham is superior below standard units. c) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, McKinney is superior above V standard units. d) The break-even point for Bonham is units. (Enter your response rounded to the noor
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...
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Answer letter d only
Transcribed Image Text:a) The volume of output at wnich both tne locations nave the same prolit
ave the same profit
Star
standard units.
b) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Bonham is superior below
standard units.
c) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, McKinney is superior above
d) The break-even point for Bonham is
units. (Enter your response rounded to the nearest whole number.)
The break-even point for McKinney is
units. (Enter your response rounded to the nearest whole number.)
Transcribed Image Text:Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney.
Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of
$940,000 and variable costs of $12,800 per standard unit. The finished items sell for $28,000 each.
a) The volume of output at which both the locations have the same profit =
standard units (round your response to the nearest whole number).
b) Básed on the analysis of the volume, after rounding the numbers to the nearest whole number, Bonham is superior below
standard units.
c) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, McKinney is superior above
standard units.
d) The break-even point for Bonham is
units. (Enter your response rounded to the nearest whole number.)
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