Agua HOH, Inc., makes water treatment machines for homes. These machines are referred to as A-HOH,...

 

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Agua HOH, Inc., makes water treatment machines for homes. These machines are referred to as A-HOH, and Agua HOH, Inc. is trying to decide whether or not to build a new plant in Southern California. The plant will have annual fixed costs of $2,000,000 and variable costs of $800 for each A-HOH produced. The sales price is $1,000 for each A-HOH. (a) Determine the break-even quantity. (b) Marketing is certain that they will be able to sell much more than the break-even quantity in part a. and have proposed building an even larger plant. This plant will have annual fixed costs of $5,000,000 and variable cósts of $700 for each A-HOH produced. The sales price will stilk be $1,000 for each A-HOH. Determine the quantity above which the larger plant should be built, rather than the plant in part a. O (a) 10,000; (b) 16,667 O (a) 2,001; (b) 16,667 Non of the above O (a) 2,001; (b) 30,000 (a) 10,000; (b) 30,000 Agua HOH, Inc., makes water treatment machines for homes. These machines are referred to as A-HOH, and Agua HOH, Inc. is trying to decide whether or not to build a new plant in Southern California. The plant will have annual fixed costs of $2,000,000 and variable costs of $800 for each A-HOH produced. The sales price is $1,000 for each A-HOH. (a) Determine the break-even quantity. (b) Marketing is certain that they will be able to sell much more than the break-even quantity in part a. and have proposed building an even larger plant. This plant will have annual fixed costs of $5,000,000 and variable cósts of $700 for each A-HOH produced. The sales price will stilk be $1,000 for each A-HOH. Determine the quantity above which the larger plant should be built, rather than the plant in part a. O (a) 10,000; (b) 16,667 O (a) 2,001; (b) 16,667 Non of the above O (a) 2,001; (b) 30,000 (a) 10,000; (b) 30,000

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Ans a 2001 b 16667 Breakeven Quantity refers to the number of units ... View the full answer