Bimino Corp is considering building a new bottling plant.They have collected information on fixed and variables costs for 4 potential plant locations.

a.Plot the total cost curves for the four plant locations on a single graph.
b.Find the break-even points and determine the range of demand for which each location has a cost advantage.
c.Which plant location is best if demand is 8,000 units?

Question

Bimino Corp is considering building a new bottling plant.They have collected information on fixed and variables costs for 4 potential plant locations.
  
a.Plot the total cost curves for the four plant locations on a single graph.
b.Find the break-even points and determine the range of demand for which each location has a cost advantage.
c.Which plant location is best if demand is 8,000 units?

Quizplus · Accepted Answer

The Answer of Bimino Corp is considering building a new bottling plant.They have collected information on fixed and variables costs for 4 potential plant locations.
  
a.Plot the total cost curves for the four plant locations on a single graph.
b.Find the break-even points and determine the range of demand for which each location has a cost advantage.
c.Which plant location is best if demand is 8,000 units?

Bimino Corp Is Considering Building a New Bottling Plant