For what levels of manufacture would each location be best

Assignment Help Econometrics

Reference no: EM13206239

The following data are related to the operating costs of three possible locations for Fountain Manufacturing

location 1 location 2 location3

fixed costs $165,000 $125,000 $180,000

direct material cost per unit 8.5 8.4 3.7

Direct labor cost per unit 4.2 3.9 3.7

Overhead per unit 1.2 1.1 1.0

Transportation costs per 1000 units 800 1,100 950

Which location would minimize the total costs, given an annual production of 50,000 unit? for what levels of manufacture and distribution would each location be best?

Reference no: EM13206239

Questions Cloud

Determine the opportunity cost of attending the concert : If you receive a free ticket to a concert, what, if anything, is your opportunity cost of attending the concert How does your opportunity cost change if miserable weather on the night of the concert requires you to leave much earlier for the conce..

Concept and the way we develop relationships : Concept and the way we develop relationships with others are examples

Explain concentration solution of barbituric acid : Calculate the [H3O+] concentration in 0.45 M solution of barbituric acid, HC4H3N2O3. Ka for barbituric acid is 1.0 X10 ^-5.

Geologic time scale : The geologic time scale was established without the aid of radiometric dating. What principles were used to develop the time scale? Explain

For what levels of manufacture would each location be best : Transportation costs per 1000 units 800 1,100 950 Which location would minimize the total costs, given an annual production of 50,000 unit for what levels of manufacture and distribution would each ..

Explain the compounds as strong acids : In aqueous solution, classify these compounds as strong acids, weak acids, strong bases, weak bases other. H3PO4, HF, LiOH,

What are the implications in our economy of output : Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers

Explain monoprotic acid is dissolved in water : Enough of a monoprotic acid is dissolved in water to produce a 0.0104 M solution. The pH of the resulting solution is 2.46.

Is the measure stabilizing or destabilizing : Some states are required to balance their budgets. Is this measure stabilizing or destabilizing Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on th..

User Account

All Pages