Q9. A, B and C are the three potential locations for a new plant for producing...

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Q9. A, B and C are the three potential locations for a new plant for producing headphone. The expected production volume is 1,850 units/year and the expected selling price for each headphone is 90$. Site A B C Fixed cost / year ($) 20,000 40,000 80,000 Variable cost / unit ($) 50 30 10 a) Find the total cost for these three locations and select the best location for the new plant. (6 pts) b) Draw the crossover chart for locational break-even analysis. Show the intersection points of these locations in the graph clearly. (8 pts) c) If expected volume was equal to 2100 units, which location you would select based on the crossover chart in (b)? (6 pts) Q9. A, B and C are the three potential locations for a new plant for producing headphone. The expected production volume is 1,850 units/year and the expected selling price for each headphone is 90$. Site A B C Fixed cost / year ($) 20,000 40,000 80,000 Variable cost / unit ($) 50 30 10 a) Find the total cost for these three locations and select the best location for the new plant. (6 pts) b) Draw the crossover chart for locational break-even analysis. Show the intersection points of these locations in the graph clearly. (8 pts) c) If expected volume was equal to 2100 units, which location you would select based on the crossover chart in (b)? (6 pts)

Answer rating: 100% (QA)

a To find the total cost for each location we need to calculate the sum of fixed costs and variable ... View the full answer