Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $120,000 $110,000 Site B a. The breakeven point for these two locations is 909 units per year b. Ste B is the desired location if the production rate is 1000 units per year $18 $29 c. The breakeven point for these two locations is 625 units per year d Ste.A is the desired location if the production rate is 500 units per year

Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
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Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.
LOCATION
ANNUAL FIXED COSTS UNIT VARIABLE COSTS
Site A
$120,000
Site B
$110,000
a.
The breakeven point for these two locations is 909 units per year
b Se B is the desired location if the production rate is 1000 units per year
The breakeven point for these two locations is 625 units per year
d Ste A is the desired location if the production rate is 500 mits per year
$18
$29
Transcribed Image Text:Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $120,000 Site B $110,000 a. The breakeven point for these two locations is 909 units per year b Se B is the desired location if the production rate is 1000 units per year The breakeven point for these two locations is 625 units per year d Ste A is the desired location if the production rate is 500 mits per year $18 $29
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