Please give a hand near guidance problem?
Hugh Leach Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations own been identified: Bonham and McKinney. Bonham would have fixed costs of $780,000 per year and changeable costs of $17,000 per standard unit produced. McKinney would have annual fixed costs of $960,000 and inconstant costs of $11,000 per standard unit. The finished items sell for $33,000 respectively.
At what volume of output would the two locations have the same profit (how heaps units)?
Round your answer to the nearest whole number; for example, 123 .
(b) For what range of output would Bonham be superior (have better profits)? units
Round your answer to the nearest whole number; for example, 123 .
(c) For what array would McKinney be superior?
Above or Below units
Round your answer to the nearest whole number; for example, 123
Answers: Here's some relieve but you have to work it out.
profit per unit at bonham is 33000 - 17000
profit per component at mckinney is 33000 - 11000 (more profit)
divide the fixed costs by profit per unit for each site. to be exact break-even production quantity needed.
the ideal production ranges will be from the smaller number to the larger number for the smaller number site. any more than the larger number, and it's the better site.
so, to generate up and example:
if bonham break even is 200
mckinney is 300
bonham is ideal if the sales per year are between 200-300
over 300, mckinney is better
does that help out?
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At what volume of output would the two locations have the same profit (how heaps units)?
Round your answer to the nearest whole number; for example, 123 .
(b) For what range of output would Bonham be superior (have better profits)? units
Round your answer to the nearest whole number; for example, 123 .
(c) For what array would McKinney be superior?
Above or Below units
Round your answer to the nearest whole number; for example, 123
Answers: Here's some relieve but you have to work it out.
profit per unit at bonham is 33000 - 17000
profit per component at mckinney is 33000 - 11000 (more profit)
divide the fixed costs by profit per unit for each site. to be exact break-even production quantity needed.
the ideal production ranges will be from the smaller number to the larger number for the smaller number site. any more than the larger number, and it's the better site.
so, to generate up and example:
if bonham break even is 200
mckinney is 300
bonham is ideal if the sales per year are between 200-300
over 300, mckinney is better
does that help out?