Table 13.8 an Operations Manager Has Narrowed Down the Search for a for a New

question 40

Multiple Choice

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

-Use the information in Table 13.8 to determine the best statement.

• A) Location C is the best one if volumes are quite high.
• B) Location A becomes the most expensive place to produce at volumes in excess of 2,000.
• C) The break-even quantity between A and B is less than or equal to 5,000 units.
• D) The break-even quantity between C and B is more than 30,000 units.

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Definitions:

Trunk

The main part of the human body not including the head, neck, and limbs; also the main structural part of a tree.

Plantar Surface

The bottom part of the foot that comes in direct contact with the ground during standing or walking.

Foot

The lower extremity of the leg below the ankle, on which a person stands or walks.

Antebrachial Region

The region of the human body that corresponds to the forearm, extending from the elbow to the wrist.