The local Carrier Coolant Company is deciding between two location alternatives, Byhalia and Tupelo. Relative cost info is reported in the table below Each unit can be sold for $240.

 

                                        Byhalia                  Tupelo

Fixed Cost                  $60,000                 $80,000

Labor Cost                  $30/unit                 $25/unit

Material Cost              $115/unit                  $95/unit

 

If the annual demand is 2,500 units, which alternative yields the higher profit? At what volume would both locations yield the same profit? What would the profit be?

Answer rating: 100% (QA)

To determine which location alternative yields the higher profit and at what volume both locations yield the same profit we need to calculate the prof... View the full answer