Question: Please answer clear and concise. Double check work, thank you! A small producer of machine tools wants to move to a larger building, and has

Please answer clear and concise. Double check work, thank you! A small

Please answer clear and concise. Double check work, thank you!

A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $130,000 and variable costs of $10,000 per unit; location B has annual fixed costs of $330,000 and variable costs of $8,000 per unit. The finished items sell for $12,000 each. a. At what volume of output would the two locations have the same total cost? b-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) b-2. For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!