Jenkins Manufacturing produces a wide variety of plastic products, mostly for major department stores. They are gearing up for production of their deluxe lawn sprinkler. Currently, they can produce the deluxe lawn sprinkler at four manufacturing locations--their Cincinnati factory, their San Diego factory, their St. Paul factory, and their largest production facility in Atlanta. The accounting data for producing the deluxe lawn sprinkler are given in the table below. The selling price for Jenkin's lawn sprinkler is $21 per unit. Fixed Variable Selling Cost Cost Price Cincinnati $ 350,000 $ 18.00 $ 21.00 San Diego $ 475,000 $ 15.00 $ 21.00 St. Paul $ 320,000 $ 16.00 $ 21.00 Atlanta $ 385,000 $ 12.00 $ 21.00 In comparing the St. Paul plant to the Atlanta plant, what would be the necessary demand for lawn sprinklers that would make the Atlanta facility more profitable than the St. Paul facility?

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To compare the profitability of the Atlanta facility to the St Paul facility we need to calculate t... View the full answer