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

Darren€™s 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:

Darren€™s Custom Guitars has narrowed its potential choices for i

a. Use breakeven point analysis to determine where Darien should locate.
b. Based solely on breakeven quantity, if Darren€™s 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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