An Operations Manager Has Narrowed Down the Search for a New

question 116

Multiple Choice

An operations manager has narrowed down the search for a new plant for McIntosh Enterprises to three locations.Fixed and variable costs follow: Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. Which of the following statements is correct?

• A)Location C is the best one if volumes are quite low.
• B)Location A becomes the most expensive place to produce at volumes less than 10,000.
• C)The break-even quantity between A and B is less than or equal to 17,000 units.
• D)The break-even quantity between C and B is more than 30,000 units.

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Definitions:

Dominant Trait

A trait that is expressed or visible when a gene variant (allele) is present, even when its counterpart allele is a different variant.

Brown Eyes

A common eye color resulting from a high concentration of melanin in the iris.

Blue Eyes

Blue eyes are a physical trait characterized by the lack of melanin in the iris, which results in light being scattered and reflected, thus appearing blue.

Genotype

The genetic makeup of an organism, consisting of all the genes and alleles present in its DNA.