Question: please use excel while solving An owner of local coffee shop is willing to expand her business by adding a new branch in high traffic
please use excel while solving
An owner of local coffee shop is willing to expand her business by adding a new branch in high traffic street. She identified three different locations. First location at Steen St., which has annual fixed cost of S.R 900 and variable cost of S.R 12.0 per unit produced. Second at Sultan St, which has annual fixed cost of S.R 1200 and variable cost of S.R 6.0 per unit. Third at Tahlia St., which has annual fixed cost of S.R. 1500 and variable cost of S.R 3.5 per unit. a. Plot the three total-cost lines for all locations on a single graph b. Identify the range of output for which each alternative is superior (1.e, has the lowest total cost), c. If expected output at the selected location is to be exactly 50 units per year, which location(s) would provide the lowest total cost? d. If expected output at the selected location is more than 120 units per year, which location would provide the lowest total cost
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
