Green Paper Recycling manufactures paper plates and cups from recycled paper and cardboard. The company has narrowed

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Green Paper Recycling manufactures paper plates and cups from recycled paper and cardboard. The company has narrowed its potential choices for its new manufacturing facility to four cities in France. Management has gathered the following information about the manufacturing and shipping costs of locating in each of these four cities:Fixed Costs per Year City Paris 350,000 Marseille 675,000 Lyon 1,300,000 Toulouse 1,800,000 Variable

a. Use break-even analysis to determine where Green Paper should locate.
b. Based solely on the break-even quantity, if Green Paper's manufacturing forecast for the foreseeable future is 500,000 units annually, where should it locate?

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Operations Management Processes And Supply Chains

ISBN: 9781292409863

13th Global Edition

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

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