Question: Can you please help me figure out this problem and how to do it on excel? 1.(20 pts.) A manufacturing firm is planning to open

Can you please help me figure out this problem and how to do it on excel?

1.(20 pts.) A manufacturing firm is planning to open a new factory.There are four countries under consideration: USA, Canada, Mexico, and Panama.The table below lists the fixed costs and variable costs for each site.The product is mainly sold in the U.S. for $995 per unit.

Location Fixed CostVariable cost

USA $1,000,000 $210

Mexico $550,000 $250

Canada $700,000 $230

Panama $ 450,000 $300

a- Using cross-over analysis, find the range of production that makes each country optimal with lowest total cost.

b- Using Excel, construct total production cost linear graph for all 4 locations and verify cross-over points obtained in part (a).In your graph, use quantity values from 0 to 20,000 at increments of 500.

c- If the company forecasts that market demand will be around 17,000 per year, which country

is the best choice and what is the yearly profit?

d- Construct Total cost, Total revenue, and Total profit graphs for the optimal location in part C. In your graph, use quantity values from 0 to 20,000 at increments of 500.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!