You are a financial analyst in the Operations Department of the New World Pasta Company of Harrisburg, PA and the firm is considering two possible locations for a combination factory and warehouse namely, Bismarck, ND (fixed cost = $180,000, variable cost = $19.00 per unit) and Omaha, NE (fixed coast = $160,000, variable cost = $21.00 per unit). Both sites are well situated in the growing region of the U.S. for Durum Wheat which is the main ingredient in pasta.

4.1 What is the crossover point for these two sites?

Answer rating: 100% (QA)

Calculating the Crossover Point The crossover point is the production volume at which the total c... View the full answer