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Do Homework $-$ Homework #$6$ Location Chap $8$

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perations Management $(3)$

Roger Russo$-$Soley

$04/03/246$:$24$ PM

work #$6$

Question $5,$ Problem

$8\mathrm{.}19$

HW Score: $35\%,3\mathrm{.}5$ of

Part $1$ of $5$

$10$ points

Points: $0$ of $1$

Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $$800,000$ per year and variable costs of $$15,000$ per standard unit produced. McKinney would have annual fixed costs of $$940,000$ and variable costs of $$13,900$ per standard unit. The finished items sell for $$28,000$ each.

a$)$ The volume of output at which both the locations have the same profit $=$ standard units $($round your response to the nearest whole number$).$

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$m=1$

hey $=1$