Blazer Whole Grains is considering two location alternatives. At location A, fixed costs would be $4,000...

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Blazer Whole Grains is considering two location alternatives. At location A, fixed costs would be $4,000 per year, and variable costs $0.40 per unit. At alternative B, fixed costs would be $3,500 per year, with variable costs of $0.45 per unit. If annual demand is expected to be 10 thousand units, which plant offers the lowest total cost? Total Cost = Fixed Cost+ (Variable Cost x Volume) In case you need Excel: CalcUsing Excel Location A Location B Location A and B have equal costs at this volume None of them, since the two cost lines do not cross each other The amount of information given is not sufficient Referring back to the Blazer Whole Grains question, where location A, has a fixed cost of $4,000 per year, and variable cost of $0.40 per unit and location B has a fixed cost of $3,500 per year, with variable cost of $0.45 per unit, which one is TRUE? In case you need Excel: CalcUsing Excel At all volumes less than 10000 units location A is cheaper Only at 10000 units in volume location A is cheaper At all volumes between 5000 and 15000 units location A is cheaper At all volumes above 10000 units location A is cheaper At all volumes location A is cheaper Blazer Whole Grains is considering two location alternatives. At location A, fixed costs would be $4,000 per year, and variable costs $0.40 per unit. At alternative B, fixed costs would be $3,500 per year, with variable costs of $0.45 per unit. If annual demand is expected to be 10 thousand units, which plant offers the lowest total cost? Total Cost = Fixed Cost+ (Variable Cost x Volume) In case you need Excel: CalcUsing Excel Location A Location B Location A and B have equal costs at this volume None of them, since the two cost lines do not cross each other The amount of information given is not sufficient Referring back to the Blazer Whole Grains question, where location A, has a fixed cost of $4,000 per year, and variable cost of $0.40 per unit and location B has a fixed cost of $3,500 per year, with variable cost of $0.45 per unit, which one is TRUE? In case you need Excel: CalcUsing Excel At all volumes less than 10000 units location A is cheaper Only at 10000 units in volume location A is cheaper At all volumes between 5000 and 15000 units location A is cheaper At all volumes above 10000 units location A is cheaper At all volumes location A is cheaper

Answer rating: 100% (QA)

1 LOCATION A AND B HAVE EQUAL COSTS FOR TOTAL COST FIXED COST VARIABLE COST UNITS SOLD 4000 04 ... View the full answer