Question: Darrens Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following Information is known about each of these
Darrens Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following Information is known about each of these four cities:
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a. Use breakeven point analysis to determine where Darien should locate.
b. Based solely on breakeven quantity, if Darrens manufacturing forecast for the foreseeable future is 40,000 units annually, where should helocate?
Fixed Costs per Year Phoentx Buffalo Seattle Atianta $300,000 $600,000 $1 ,500,000 S1.750,000 Variable Costs per Unit $75.00 $60.00 $38.00 $47.00
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