Location Cross Over model When Chuck was a manager at General Motors Corp., GM had a wholly-owned subsidiary named Delphi Corporation. Delphi produced stereos, radios, and speakers, as well as other electronic components for both GM vehicles and other automobile manufacturers on a contract basis. Delphi made these components for GM under the brand name AC Delco. At one point Delphi had come out with a new product named On-Star, which was a communication system which allowed the driver to communicate with Delphi directly to unlock their vehicle, notify authorities of a break-down, or notify emergency services in the event of a crash, amongst other services such as giving driving directions and recommendations to travelers. Audi Motorsports has just requested a production run of 4002. GM sells the systems to Audi for $250 per. Delphi has three production facilities, each with its own Fixed Cost and Variable Costs curves associated with it: Site 1. Akron 2. Bowling Green 3. Chicago FC + VC/unit X1 = $35,000 $70,250 $130,250 + 80X + 50X + 35X Question 1. For a given output, Z = 4002, where should Delphi produce? That is, calculate a cross-over of Akron to Bowling Green and one for Bowling green to Chicago, Show your work including the graph. [10] X2 = Question 2. What is the Profit for that particular production run? [7] Question 3. What are the revenues at the Cross-Over points? [8]