Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The com-pany is undecided between Detroit and Dallas as the site. The COST DALLAS DETROITFixed costs $600,000 $800,000Variable costs $28/radio $22/radioa) Perform an analysis of the volume over which each location ispreferable.b) How does your answer change if Dallas’s fixed costs increaseby 10%?
Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The com-pany is undecided between Detroit and Dallas as the site. The COST DALLAS DETROITFixed costs $600,000 $800,000Variable costs $28/radio $22/radioa) Perform an analysis of the volume over which each location ispreferable.b) How does your answer change if Dallas’s fixed costs increaseby 10%?
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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Peter Billington Stereo, Inc., supplies car radios to
auto manufacturers and is going to open a new plant. The com-
pany is undecided between Detroit and Dallas as the site. The
COST DALLAS DETROIT
Fixed costs $600,000 $800,000
Variable costs $28/radio $22/radio
a) Perform an analysis of the volume over which each location is
preferable.
b) How does your answer change if Dallas’s fixed costs increase
by 10%?
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