Examlex
A small producer of music boxes wants to move to a larger facility. Two alternative facilities have been found. Site 1 has a fixed cost of $50,000 per year, with a variable cost of $15 per unit. Site 2 has a fixed cost of $80,000 per year, but a variable cost of $11 per unit.
(a) Write out the equation for total cost for each site.
(b) At what volume of output would the two locations have the same total cost?
(c) For what range of output would Site 1 be superior?
(d) For what range of output would Site 2 be superior?
Q27: Capacity decisions are based on technological concerns,
Q38: Normal time is always less than the
Q80: What is cross-docking? What are some of
Q87: A nationwide parcel delivery service keeps track
Q97: Distribution management focuses on which of the
Q171: A restaurant manager wants to determine the
Q192: _ systems provide some portion of any
Q211: _ often calls for fewer but longer
Q220: A firm sells two products. Product R
Q225: Provide an example of the focus strategy