Producer of machine tools

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Reference no: EM132078210

Peggy Lane Corp. a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and Mckinney. Bonham would have fixed costs of _$820,000_____ per year and variable costs of __$13,000_____ per standard unit produced. McKinney would have annual fixed costs of 940,000______ and variable costs of __11,900____ per standard unit. The finished items sell for _30,000_____ each

a) The volume of output at which both the locations have the same profit= ____ Standard units (round to nearest whole number)

Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number,

Bonham is superior below__________ standard units.

c) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number,

McKinney is superior above_______ standard units.

d) the breakeven point for bonham is ___ units.

The breakeven point for Mckinney is _____ units.

Reference no: EM132078210

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