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Management Studies

Question: Xun Company located at Dayton, Ohio, is looking at building up factories either at Cincinnati, Columbus, or Cleveland. They have estimated the following parameters for each location. For what demand range should Xun choose factory locations?

Location	Fixed Cost	Variable Cost
Cincinnati	300,000	6
Columbus	600,000	4
Cleveland	100,000	8

Step 1: calculate indifference points

Step 2: draw the total cost line for each location

Step 3: identify the demand range for each location

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92740816

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