Where is the crossover point for albany and columbus

Assignment Help Operation Management

Reference no: EM132223190

A manufacturer of automobile water pump is considering three locations – Macon, Albany, and Columbus – for a new plant. Cost studies indicate that fixed costs per year at the sites are $30,000, $60,000, and $110,000 respectively; and variable costs are $75 per unit, $45 per unit, and $25 per unit, respectively. The expected selling price of the water pump produced is $120. The company wishes to find the most economical location for an expected volume of 2,000 units per year. Please answer the following questions and show all your work for partial credits.

1) Where is the crossover point for Macon and Albany?

2) Where is the crossover point for Albany and Columbus?

3) Plot the total-cost lines for these locations on a single graph

4) With an expected volume of 2,000 units per year, which location is the best for this company to minimize the total cost?

5) With an expected volume of 2,000 units per year, what is the expected profit for this company?

Reference no: EM132223190

Questions Cloud

Change be integral part of our definition of leadership : Why wouldn’t change be an integral part of our definition of leadership?

During many stages of the development of business : Although a business plan is not required it can be of great use during many stages of the development of a business.

Create and sustain organizational culture : What factors create and sustain an organizational culture?

Two ways of reducing the negative aspects associated : What are two ways of reducing the negative aspects associated with using absorption costing to evaluate the performance of a plant manager?

Where is the crossover point for albany and columbus : Where is the crossover point for Macon and Albany? Where is the crossover point for Albany and Columbus?

World bank as indicator of institutional quality-governance : Which of the following is not measured by the World Bank as an indicator of institutional quality or governance?

Drivers of industry pushing profitability to subpar levels : Are drivers of industry pushing profitability to subpar levels based on rivals, or environment, or consumers, etc

Identify two hard to fill healthcare positions : Identify two hard to fill healthcare positions.

You think this was fair to european consumers : Why did the Europeans try to protect their auto industry from Japanese imports, and do you think this was fair to European consumers?

User Account

All Pages