HW 1 Part 2- Please complete all work in excel. Use excel to make the calculations and be sure to identify your answer, including units.

7) Design Expo is considering new locations for its manufacturing plants. Costs for constructing a new facility in Birmingham are $10,100,000 and the company estimates that for every product from its new line, there would be an additional cost of $2. If the company were to locate in Ames, the new facility would cost $11,800,000 and each product would incur a $1 incremental cost. The company plans to sell the products to retailers for $12. a. What is the break-even point for each location? (10 pts) b. At what volume is the point of indifference? (10 pts) c. At what forecasted volumes should Design Expo select Birmingham as their new manufacturing location and what volumes should the company select Ames and why? (5 pts)