Table 11.8
An operations manager has narrowed down the search for a new plant for Burdell Industries to three locations.Fixed and variable costs follow.

-Use the information in Table 11.8 to determine the best statement.
A)Location C is the best one if volumes are quite high.
B)Location A becomes the most expensive place to produce at volumes in excess of 2,000.
C)The break-even quantity between A and B is less than or equal to 5,000 units.
D)The break-even quantity between C and B is more than 30,000 units.

Question

Table 11.8
An operations manager has narrowed down the search for a new plant for Burdell Industries to three locations.Fixed and variable costs follow.
 
-Use the information in Table 11.8 to determine the best statement.
A)Location C is the best one if volumes are quite high. 
B)Location A becomes the most expensive place to produce at volumes in excess of 2,000. 
C)The break-even quantity between A and B is less than or equal to 5,000 units. 
D)The break-even quantity between C and B is more than 30,000 units.

Quizplus · Accepted Answer

Location C has the lowest cost per unit at high volumes.

Table 11.8 an Operations Manager Has Narrowed Down the Search for a for a New