The intersection of edwardsville and fayetteville cost lines

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1. Research various international strategies. Take one that you find interesting and investigate it more in depth.  Tell why the approach you selected is a good approach for your company or some other company that you are interested in to increase international business.

2. Ching-Chang Kau is considering opening a new foundry in Denton, Texas; Edwardsville, Illinois; or Fayetteville, Arkansas, to produce high-quality rifle sights. He has assembled the following fixed-cost and variable costs data:

Location Fixed cost per year Per-Unit costs Material Variable Labor Overhead

Denton $200,000 $0.2 $0.4 $0.4

Ewardsville $180,000 $0.25 $0.75 $0.75

Fayetteville $170,000 $1 $ 1 $1

a) Over what range of annual volume is each facility going to have a competitive advantage?

b) What is the volume at the intersection of the Edwardsville and Fayetteville cost lines?

Reference no: EM132268976

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