not certain how to calculate because it says each item sells for 17,000. also, I wouldnt be sure which numbers to graph with  1. A small producer of machine tools wants to move to a larger building, and has identified twoalternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 perunit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1.The finished items sell for $17,000 each.A) State the total-cost formula:B) Calculate a second point for each location: Set a selected quantity = ____ Use q=150 units C) Sketch the total-cost lines for the locations on a single graph.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 13P
icon
Related questions
Question

not certain how to calculate because it says each item sells for 17,000. also, I wouldnt be sure which numbers to graph with 

1. A small producer of machine tools wants to move to a larger building, and has identified two
alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per
unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1
.
The finished items sell for $17,000 each.
A) State the total-cost formula:
B) Calculate a second point for each location: Set a selected quantity = ____ Use q=150 units

C) Sketch the total-cost lines for the locations on a single graph.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Location planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing