A Manufacturing Company Is Considering Two Alternative Locations for a New

question 113

Essay

A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive? If the company plans on producing 50,000 units, which location would be more attractive?
$$\begin{array} { | l | l | l | } \hline & \text { Glen Rose } & \text { Mesquite } \\\hline \text { Fixed Costs } & \$ 1,000,000 & \$ 1,500,000 \\\hline \text { Variable Costs (\$per unit) } & 25 & 23 \\\hline\end{array}$$

---

Definitions:

Self-concept

An individual's understanding and assessment of their own qualities, characteristics, and capabilities.

Self-ideal

An individual's conception of their perfect self or the standards and aspirations they strive to achieve.

Self-actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Coping Technique

Strategies or methods used to manage stress, adversity, or emotional distress in productive and healthy ways.