Given the following information: Location Annual Fixed Cost Unit Variable Cost A B C D $200,000...
Given the following information:
|
Location |
Annual Fixed Cost |
Unit Variable Cost |
|
A B C D |
$200,000 $300,000 $400,000 $600,000 |
$50 $45 $25 $20 |
Which plant location is best if demand is 30,000 units?
A
B
C
D
Homework Answers
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| Please find below the answer | ||||
| Statementshowing Computations | ||||
| Particulars | LocationA | Location B | Location C | Location D |
| Variable costs | 1,500,000.00 | 1,350,000.00 | 750,000.00 | 600,000.00 |
| Fixed costs | 200,000.00 | 300,000.00 | 400,000.00 | 600,000.00 |
| Total Costs | 1,700,000.00 | 1,650,000.00 | 1,150,000.00 | 1,200,000.00 |
| Location C is best |
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