Question: a store needs to decide between two location alternatives, Houston and Dallas. Houston would have annual fixed costs of $60,000, labor costs of $30 per
a store needs to decide between two location alternatives, Houston and Dallas. Houston would have annual fixed costs of $60,000, labor costs of $30 per unit, and material costs of $120 per unit. Dallas would have annual fixed costs of $80,000, labor costs of $20 per unit, and material costs of $80 per unit. Revenue will be 250 per unit. which alternative would yield the higher profit for an annual demand of 2,500 units? At what volume would the two locations yield the same profit? What is the profit?
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