Question

1.A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $54,000 for A and $27,000 for B; variable costs per unit would be $9 for A and $11 for B; and revenue per unit would be $16. a. Determine each alternatives break-even point in units. (Round your answer to the nearest whole amount.) units units OBEP, A QBEP, B b. At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount.) Profit units

2.

Location Score Factor (100 points each) Weight Convenience Parking facilities Display area Shopper traffic Operating costs Neighborhood .15 20 18 .27 10 10 1.00 86 70 86 90 86 90 83 98 94 89 96 84 90 91 86 a. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Location Composite Score

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