1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. 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. [4 marks] Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. [8 marks] Over what range of output is location A the most preferred location?[1 marks] Over what range of output is location B the most preferred location?[1 marks] Over what range of output is location C the most preferred location?[1 marks] 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. 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. [4 marks] Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. [8 marks] Over what range of output is location A the most preferred location?[1 marks] Over what range of output is location B the most preferred location?[1 marks] Over what range of output is location C the most preferred location?[1 marks]
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below i Equation to represent the total c... View the full answer
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
Posted Date:
Students also viewed these general management questions
-
What reasons can you suggest to support the standard assumption that asset markets adjust more rapidly to a disequilibrium situation than do goods markets?
-
How can a change in interest rates affect the profitability of financial institutions?
-
How does a change in interest rates affect business borrowing?
-
Need assistance on adding accounting info to the excel worksheet posted. A.) would 97,400 go under cash or fixed assets ? Number Styles Cells Editing Ideas g Cash Balance B. C D E H. K M T. 0,1,F...
-
Describe and give examples of some of the following types of pricing objectives: profit, market share, competitive effect, customer satisfaction, and image enhancement.
-
You have been assigned to the audit team for B.B. JAMS Ltd., one of your significant clients. Below is the income statement prepared by the company's accountant for the December 31, 2012 year end....
-
Derive an expression for the electric energy generation per unit of air volume stored in a cavity for a CAES system. Assume that there are two expansion stages and express the work output as the sum...
-
The following data were accumulated for use in reconciling the bank account of Ross Co. for March 20Y9: a. Cash balance according to the companys records at March 31, $29,945. b. Cash balance...
-
How would you define "art"? What makes something a work of art? What are the characteristics of a work of art-according to you, not according to the textbook, a dictionary, or a website? In this...
-
Monica wishes to assess whether she should invest in both or only one of the investments listed below. Her required annual rate of return is 8%. What would you recommend to Monica? Investment Q...
-
Peter and Luke are starting a law firm together. Peter will provide legal help to businesses and Luke to provide legal help to individuals, they have a third friend Andrew who will be an investor in...
-
3. Given the following information, fill out the following table and determine what should be the optimal capital structure for Concours Corp. The company has $10 million in assets, a marginal tax...
-
Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the...
-
Briefly explain the meaning of the following terms as used in the law of succession. Donatio mortis causa. (ii) Partial intestacy. Kifo died on 12 March 2013, and by his will made in 2011, bequeathed...
-
The Daniel Bean has five projects to assign and decides to go against all convention and assign them to individuals rather than project teams. He has the statisticians estimate the labor cost in...
-
An option strategy called the iron butterfly is illustrated in the payoff diagram below. Payoff 40 Iron butterfly Type X T-t Put 45 1 Call 45 1 Put 50 1 Call 50 1 Put 55 1 Call 55 1 Premium $1.876...
-
6. In this exercise, we are going to examine the average return and volatility of the NASDAQ Composite index. Go to the webpage https://finance.yahoo.com. Download historical prices for NASDAQ...
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has eight years to maturity. What is the bonds yield to maturity?
-
Congress allowed Oldhat to amortize the loss over the remaining life of the mortgage. If this technique was used in the sale, how would the transaction have been recorded? What would be the annual...
-
Discuss the features that differentiate organized exchanges from the over-the-counter market.
-
Consider the following 1. Safety valve 2. Steam trap 3. Steam separator 4. Economiser Among these the boiler accessories would include (a) l, 2 and 3 (b) 2, 3 and 4 (c) l and 4 (d) l, 2, 3 and 4
-
Injector is used in small boilers (a) to inject steam to increase its capacity (b) to inject water like a feed pump (c) to inject air to the furnace (d) none of the above
-
Match List I and List II and select the correct answer using the codes given below the lists List I (Type of boiler) A. Babcock and Wilcox B. Lancashire C. La-mont D. Cochran List II (Classification...
Study smarter with the SolutionInn App