Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.? $\begin{array}{ccc}
\text { LOCATION } & \text { ANNUAL FIXED COSTS } & \text { UNIT VARIABLE COSTS } \
\hline \text { Site } A & \$ 50,000 & \$ 10 \
\text { Site B } & \$ 20,000 & \$ 30
\end{array}$
A)Site A is the desired location if the production rate is 1000 units per year
B)The breakeven point for these two locations is 1500 units per year
C)Site B is the desired location if the production rate is 2000 units per year
D)The breakeven point for these two locations is 500 units per year

Question

Quizplus · Accepted Answer

The breakeven point is calculated by setting the total costs equal for both sites: $50,000 + 10x = 20,000 + 30x$. Solving for $x$, we get $x = 1500$ units.

Use the Breakeven Model to Determine Which of the Statements