Homework Answers
Total cost = Fixed cost + Variable cost * number of units
Total Cost for Atlanta = $80,000+$20*20,000 = $480,000
Total Cost for Phoenix = $140,000+$16*20,000 = $460,000
As the total cost for Phoenix is less than Atlanta so Phoenix should be selected.
So correct Answer is:- Phoenix
Add Answer to:
Question 19 A manufacturing firm is considering two locations for a plant to produce a new...
21 15 A manufacturing company preparing to build a new plant is considering three potential locations...
21 15 A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. Costs A Fixed (5) 2,500,000 2,000,000 3,500,000 Variable (s per unit) In a Break-even analysis which of the following is not true. O A. Location B is cheapest up to 150,000 units OB. A is cheapest over 125,000 units and below 166,667 units OC. Cis cheapest after 166,667 units...
A manufacturing company preparing to build a new plant is considering three potential locations for it....
A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented in Table 1. Table 1 Costs A B C Fixed 50,000 600,000 800,000 Variable 40 30 20 i. Indicate over what range, each of the alternatives A, B, C is the low-cost choice.
A from a 8-34 A firm is considering moving its manufacturing plant from Chicago to a...
A from a 8-34 A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engi- neering department was asked to identify the various alternatives together with the costs to relocate the plant and the benefits. The engineers examined six likely sites, together with the do-nothing alternative of keeping the plant at its present location. Their findings are summarized as follows: Plant Location Denver Dallas San Antonio Los Angeles Cleveland Atlanta Chicago First Uniform Annual...
A manufacturing company is considering two alternative locations for a new facility. The fixed and variable...
A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units, which location would be more attractive? glen rose mesquite fixed cost $1 000 000 $1 500 000 variable cost per unit $ 25 23 please show work
You are considering the purchase of one of two machines used in your manufacturing plant. Machine...
You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. Machine B costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. Which is the better machine for the firm? The discount rate is 14...
1) (20 points) The management team for Buddy's Bats is considering two locations for a plant...
1) (20 points) The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats. The plant will produce 500 bats per week. The fixed setup costs for both plants are identical. Plant A can produce 500 bats per week. The plant works one 8 hour shift per day with 5 staff. The plant works 5 days per week. The average wage is $25 per hour. The plant would use 600 units of maple...
A newly formed firm must decide on a plant location. There are two alternatives under consideration:...
A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $181 in either case. Omaha Kansas City Annual fixed costs...
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new...
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 80,000 units at $7.00/unit. Below is a listing of estimatedexpenses: Category Total Annual Expenses % of Annual Expense that are Fixed Materials $30,000 30% Labor $70,000 10% Overhead $80,000 30% Marketing/Admin $30,000 40% A Canadian firm was contracted to sell the product and will receive a commission of 30% of the sales price. No U.S. home office expenses will be allocated...
Question Completion Status: A manufacturing company is considering two alternative locations for a new facility. The...
Question Completion Status: A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units, which location would be more attractive? Glen Rose Mesquite Fixed Costs $1,000,000 $1,500,000 Variable Costs ($ per unit) 25 23 Attach File Browse My Computer Browse Content Collection QUESTION 37...
1. A manufacturing organization is looking at the following two locations: Birmingham Manchester Variable costs $14/unit...
1. A manufacturing organization is looking at the following two locations: Birmingham Manchester Variable costs $14/unit $16/unit Annual fixed costs $12000 000 $15 000 000 Initial fixed cost $165000 000 $145 000 000 a. Draw a cost-volume graph for both locations over a 10-year period at a volume of 750,000 units per year. b. Which location has the lowest cost at the end of the 10-year period? c. At what volume do these locations have equal costs?
21 15 A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. Costs A Fixed (5) 2,500,000 2,000,000 3,500,000 Variable (s per unit) In a Break-even analysis which of the following is not true. O A. Location B is cheapest up to 150,000 units OB. A is cheapest over 125,000 units and below 166,667 units OC. Cis cheapest after 166,667 units...
A from a 8-34 A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engi- neering department was asked to identify the various alternatives together with the costs to relocate the plant and the benefits. The engineers examined six likely sites, together with the do-nothing alternative of keeping the plant at its present location. Their findings are summarized as follows: Plant Location Denver Dallas San Antonio Los Angeles Cleveland Atlanta Chicago First Uniform Annual...
1) (20 points) The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats. The plant will produce 500 bats per week. The fixed setup costs for both plants are identical. Plant A can produce 500 bats per week. The plant works one 8 hour shift per day with 5 staff. The plant works 5 days per week. The average wage is $25 per hour. The plant would use 600 units of maple...
Question Completion Status: A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units, which location would be more attractive? Glen Rose Mesquite Fixed Costs $1,000,000 $1,500,000 Variable Costs ($ per unit) 25 23 Attach File Browse My Computer Browse Content Collection QUESTION 37...
Most questions answered within 3 hours.
-
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 2 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 3 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 5 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 5 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 8 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 8 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 8 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 9 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 9 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 9 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 9 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 9 hours ago