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QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations Fixed Costs Variable Costs/unit a. i. ii. iii. iv. V. A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600 & 800 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?

QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations Fixed Costs Variable Costs/unit a. i. ii. iii. iv. V. A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600 & 800 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?

Practical Management Science
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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QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A Fixed Costs 60,000 Variable 30 Costs/unit a. i. ii. iii. iv. V. B 80,000 20 с 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600 & 800 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?
Transcribed Image Text:QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A Fixed Costs 60,000 Variable 30 Costs/unit a. i. ii. iii. iv. V. B 80,000 20 с 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600 & 800 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?
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