The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:SiteFixed Cost Per YearVariable Cost per Unit1$800$10.00$5.00$4.00$1,1003$2,100a) Afteř rounding to the nearest whole number, site 1 is best belowV units.After rounding to the nearest whole number, site 2 is best betweenV andV units.After rounding to the nearest whole number, site 3 is best aboveV units.b) If the demand is 1010 units, then the best location for the potential manufacturing plant is

Given, 1- 800-10 2-1100-5 3-2100-4

Answered: The fixed and variable costs for three…

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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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/units A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 i. 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. ii. Over what range of output is location A the most preferred location? iii. Over what range of output is location B the most preferred location? iv. Over what range of output is location C the most preferred location?
There are certain constraints to be considered while selecting the location of a plant. List them and briefly explain?
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.76 per sandwich. Sandwiches sell for $8.00 each in all locations. Rent and equipment costs would be $5,000 per month for location A, $5,500 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (Do not round Intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume A B C b-1. If expected sales at A, B, and C are 21,000 per month, 22,000 per month, and 23,000 per month, respectively, calculate ge profit of the each locations? (Do not round Intermediate calculations. Round your answer to the nearest whole number.) Location A Monthly Profits B C b-2. Which location would yield the greatest profits? e here to search R T J O…
A firm is considering two location alternatives. At location C, fixed costs would be $4,000,000 per year, and variable costs $0.45 per unit. At alternative D, fixed costs would be $5,000,000 per year, with variable costs of $0.40 per unit. If annual deman is expected to be 20 million units, which plant offers the lowest total cost? Select one: a. Plant D, because Plant D is cheaper than Plant C for all volumes below 25 million units. O b. Neither Plant C nor Plant D, because the crossover point is at 20 million unit O c. Plant C, because Plant C is cheaper than Plant D for all volumes below 25 million units. Locational Co •X= Volume • Y= Cost • Cost depends or • Fixed cost y-in • Variable cost% D Locational C
Brian Trump has obtained fixed- and variable-cost information for four potential sites for his professional wrestling school and summarized it in tabular form below. All values are in dollars. Site Fixed Cost Variable Cost A 10,000 24 B 12,000 20 C 14,000 18 D 16,000 17 Brian plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 700 students will matriculate each year, which site will result in the lowest total cost?
Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $10,000,000 $2,600 B $20,000,000 $1,900 C $30,000,000 $1,100 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) The value of volume, V, of production above which site C is recommended = nothing Sport C150s (round your response up to the next whole number). b) The value of volume, V, of production below which site A is…
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How center of gravity method is used to determine the right location for the facility placement? Benefits of using this method?
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A plastic manufacturing company is considering 2 alternative locations for a new facility. The management considered 2 alternatives: Sta. Rosa and Sta. Rita. The fixed costs for Sta. Rosa is Php1M and variable cost is Php25 per unit. On the other hand, the fixed costs for Sta. Rita is Php1.5M and variable cost is Php23 per unit. 1. If the company plans on producing 50,000 units which location would be more attractive? 2. At what volume the two alternatives equal in cost?
On the cost- volume analysis chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which:a) fixed costs arc equal for two alternative locations.b) variable costs are equal for two alternative locations.c) total costs are equal for all alternative locations.d) fixed costs equal variable costs for one location.c) total costs are equal for two alternative locations.

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