Question: Question 5 i. An organisation has narrowed its potential choices for a new facility to four cities. The following information is known about each of

Question 5 i. An organisation has narrowed its

Question 5 i. An organisation has narrowed its potential choices for a new facility to four cities. The following information is known about each of the four cities: City A B D Fixed Costs per year GHC300,000 GHC600,000 GHC1,500,000 GHC1,750,000 Variable Cost per unit GHC75 GHC60 GHC38 GHC47 a. Use breakeven point analysis to determine where the new facility should locate accordinu to ranges of demand forecast. b. Based solely on breakeven quantity, if demand forecast for the foreseeable future is 40,000 units annually, where should the facility be located? c. Discuss factors that affect location decisions for a manufacturing organisation d. Discuss factors that affect location decisions for a service organisation. Question 5 i. An organisation has narrowed its potential choices for a new facility to four cities. The following information is known about each of the four cities: City A B D Fixed Costs per year GHC300,000 GHC600,000 GHC1,500,000 GHC1,750,000 Variable Cost per unit GHC75 GHC60 GHC38 GHC47 a. Use breakeven point analysis to determine where the new facility should locate accordinu to ranges of demand forecast. b. Based solely on breakeven quantity, if demand forecast for the foreseeable future is 40,000 units annually, where should the facility be located? c. Discuss factors that affect location decisions for a manufacturing organisation d. Discuss factors that affect location decisions for a service organisation

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!