Peggy lane corp a producer of machine tools wants to move, Ask an Expert

Management Studies

Peggy Lane? Corp., a producer of machine? tools, wants to move to a larger site. Two alternative locations have been? identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $15,000 per standard unit produced. McKinney would have annual fixed costs of $940,000 and variable costs of $13,900 per standard unit. The finished items sell for $29,000 each.

?a) The volume of output at which both the locations have the same profit? = __ standard units ?(round your response to the nearest whole? number).

b) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number, Bonham is superior below __ standard units.

?c) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number, McKinney is superior above __ standard units.

d) The? break-even point for Bonham is __ units. ?(Enter your response rounded to the nearest whole? number.)

The? break-even point for McKinney is __ units. ?(Enter your response rounded to the nearest whole? number.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93065678

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