Darrens custom guitars has narrowed its potential choices, Ask an Expert

Management Studies

Darren"s Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about each of these four cities:

	Fixed Costs per Year	Variable Costs per Unit
Phoenix	$300,000	$/3.00
Buffalo	$600,000	$60.00
Seattle	$1,500,000	$38.00
Atlanta	$1.750,000	$47.00

a. Use breakeven point analysis to determine where Darren should locate.

b. Based solely on breakeven quantity, if Darren"s manufacturing forecast for the foreseeable future is 40,000 units annually.

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Project Management, Management Studies

Category:- Project Management
Reference No.:- M92033682

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