Plot the total cost lines. b) In what annual volume range will each facility have a competitive advantage? each facility? c) Perform the intersection volume calculation for the locations.
Plot the total cost lines. b) In what annual volume range will each facility have a competitive advantage? each facility? c) Perform the intersection volume calculation for the locations.
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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Andec is considering opening a new smelter in Cuenca; Quito, or Portoviejo, to produce rebar. The following fixed cost and variable cost data were collected.
a) Plot the total cost lines.
b) In what annual volume range will each facility have a competitive advantage? each facility?
c) Perform the intersection volume calculation for the locations.
|
|
Costs per Unit |
|||
|
Location |
Fixed cost per year |
Material |
Variable labor |
General Expenses |
|
Cuenca |
$73.000 |
$0,50 |
$0,40 |
$0,55 |
|
Portoviejo |
$55.000 |
$0,45 |
$0,55 |
$0,60 |
|
Quito |
$80.000 |
$0,38 |
$0,80 |
$0,90 |
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