Determine where darren should locate

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Reference no: EM131278974

Darren"s Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about each of these four cities:

	Fixed Costs per Year	Variable Costs per Unit
Phoenix	$300,000	$/3.00
Buffalo	$600,000	$60.00
Seattle	$1,500,000	$38.00
Atlanta	$1.750,000	$47.00

a. Use breakeven point analysis to determine where Darren should locate.

b. Based solely on breakeven quantity, if Darren"s manufacturing forecast for the foreseeable future is 40,000 units annually.

Reference no: EM131278974

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