Question: ExtremeX is evaluating three locations for a second headquarters. Costs for construction at location A are $12,800,000, Location B are $11,500,000 and Location C are

  1. ExtremeX is evaluating three locations for a second headquarters. Costs for construction at location A are $12,800,000, Location B are $11,500,000 and Location C are $10,100,000. Variable costs for each unit produced at Location A are $11, Location B are $12 and Location C are $14. The company plans to sell each product for $33.
    1. What is the break-even point for each location?
    2. Create a cost-volume graph that shows cost lines for all three options through 2,000,000 units.
    3. What is the optimal location strategy for ExtremeX, identify volumes and locations?

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