Business
Business, 08.11.2019 19:31, insomniacnana2

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 $ 13,000 per standard unit produced. mckinney would have annual fixed costs of $ 920,000 and variable costs of $ 12,000 per standard unit. the finished items sell for $ 29,000 each.

a. at what volume of output would the two locations have the same profit?
b. for what range of output would bonham be superior (have higher profit? )
c. for what range would mckinney be superior?
d. what is the relevance of break-even points for these cities?

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Peggy lane corp., a producer of machine tools, wants to move to a larger site. two alternative locat...

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