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The Owner of a Millwork Shop Is Considering Three Alternative

question 37

Essay

The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Plot the total cost lines in the chart provided below, and identify the range over which each location is best. $\begin{array} { | l | c | c | c | } \hline & { \text { Location } } \\\hline \text { Costs } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\\hline \text { Fixed } & \$ 700,000 & \$ 1,000,000 & \$ 1,1000,000 \\\hline \text { Variable } & \$ 28 & \$ 18 & \$ 20 \\\hline\end{array}$
$The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Plot the total cost lines in the chart provided below, and identify the range over which each location is best. \begin{array} { | l | c | c | c | } \hline & { \text { Location } } \\ \hline \text { Costs } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\ \hline \text { Fixed } & \$ 700,000 & \$ 1,000,000 & \$ 1,1000,000 \\ \hline \text { Variable } & \$ 28 & \$ 18 & \$ 20 \\ \hline \end{array}$

Definitions:

Individual Interaction

The exchange or communication between people, which can influence social, psychological, and organizational dynamics.

Job Rotation

A workforce management strategy that involves moving employees between different tasks to promote versatility and reduce monotony.

Job Enlargement

An approach to increase the number and variety of tasks that an employee performs to enhance job satisfaction.

Specialized Jobs

Positions that require a specific set of skills or knowledge in a particular area or field.