Obtained fixed and unit variable cost in formation

Assignment Help Operation Management

Reference no: EM13759810

Jimbo Elrod has obtained fixed and unit variable cost in formation of four potential locations for his professional wrestling school and summarized it in the table below. All values are in dollars.

Site Fixed Cost Variable Cost

A 10,000 24

B 12,000 20

C 14,000 18

D 16,000 17

a) Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 450 students will matriculate each year, which location will result in the lowest total cost?

b) What is the break-even point for each location if Jimbo decides to charge $22 per student?

c) How many student enrollments would make Sites B and D equally attractive?

Reference no: EM13759810

Questions Cloud

Company''s monthly net operating income or loss : The sales manager feels that an $18,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $120,000 increase in monthly sales. If the sales manager is right, what will be the effect..

Cost leadership strategy and quick-response strategy : Of the potential strategies available to Regal Marine, have they chosen differentiation, cost leadership, or quick response? Do you think that is a good choice for a boat manufacturer? Why or why not? Cost Leadership strategy and Quick-Response strat..

Explain the tax advantage of allocating : Explain the tax advantage of allocating too much to the building and too little to the land. Was Western's allocation ethical? If so, state why. If not, why not? Identify who was harmed.

The cost estimation to design a new aircraft : Boeing has developed the 787 for production in 2008*. It is expected to perform 20% more efficiently than any other plane. Assume the passenger load is similar to the Boeing 777 (which cost $6 billion to design and went into service in 1993). The BLS..

Obtained fixed and unit variable cost in formation : Jimbo Elrod has obtained fixed and unit variable cost in formation of four potential locations for his professional wrestling school and summarized it in the table below. All values are in dollars. Jimbo plans to charge the same amount for tuition re..

Calculate average cost per unit : Determine the cost of goods available for sale. Calculate average cost per unit. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of th..

What is cyber security and what are some of its key concept : What is cyber security, and what are some of its key concepts? What are the most significant threats to your data, and what are some of the root causes of those threats

Describe the indian reorganization act or indian new deal : Describe the Indian Reorganization Act or "Indian New Deal"? In what ways was it a departure from previous policy? How did it change thinking about the place of Indians in American society? How did it influence subsequent policies towards Native A..

User Account

All Pages