Excel Products Is Planning a New Warehouse to Serve the Southeast.Locations

question 94

Multiple Choice

Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.Fixed and variable costs follow. Which of the following statements is BEST?

• A)Location A is the best one if volumes are quite high.
• B)Location B is best over all volume levels.
• C)The total cost of location A,if the volume is 250,000 units,is over $8,000,000.
• D)The break-even quantity between A and B is more than 75,000 units but fewer than 200,000 units.

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Definitions:

Multiple-class Shares

Stocks issued by a single company that have different rights, dividends, or voting powers, typically designated as Class A, Class B, etc.

Front-end Load

A commission or sales charge applied at the time of the initial purchase of an investment.

SEC Rule 12b-1

A regulation by the U.S. Securities and Exchange Commission that allows mutual funds to charge their shareholders for advertising and sales promotion expenses.

Marketing Expenses

Costs associated with promoting a company, product, or service, including advertising, product samples, and event sponsorships.