Question: Ch. 8: Location Planning Cost-Volume Analysis Two locations are being considered for a new facility. They have annual fixed and variable costs as follows: Location

Ch. 8: Location Planning Cost-Volume Analysis Two

Ch. 8: Location Planning Cost-Volume Analysis Two locations are being considered for a new facility. They have annual fixed and variable costs as follows: Location Seattle Hong Kong Fixed Costs $280,000 $460,000 Variable Costs $10/unit $7/unit 1.At what point would the costs be the same for either location? 2. What are the total costs at the point of indifference? 3. Which location is superior for an annual output of 120,000? 4. How much money would be saved if the superior option identified in question #3 is chosen

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