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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Darren"s Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about each of these four cities:
Â
| Â |
Fixed Costs per Year |
Variable Costs per Unit |
|
Phoenix |
$300,000 |
$/3.00 |
|
Buffalo |
$600,000 |
$60.00 |
|
Seattle |
$1,500,000 |
$38.00 |
|
Atlanta |
$1.750,000 |
$47.00 |
Â
a. Use breakeven point analysis to determine where Darren should locate.
b. Based solely on breakeven quantity, if Darren"s manufacturing forecast for the foreseeable future is 40,000 units annually.
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