Business, 19.12.2019 23:31 donuteatingcat

Asmall producer of machine tools wants to move to a larger building, and has identified two alternatives. location a has annual fixed costs of $150,000 and variable costs of $20,000 per unit; location b has annual fixed costs of $350,000 and variable costs of $18,000 per unit. the finished items sell for $22,000 each.

a. at what volume of output would the two locations have the same total cost?

volume of output units

b-1. for what range of output would location a be superior?

range of output 0 to

b-2. for what range would b be superior?

range of output or more

Answers: 3

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Asmall producer of machine tools wants to move to a larger building, and has identified two alternat...